COTY FRAUD NOTICE: Coty Inc. Hit with Securities Fraud Investigation Due to Excess Inventory Levels -- Contact BFA Law if You Suffered Losses

Core Viewpoint - Coty Inc. is under investigation for potential violations of federal securities laws, following disappointing financial results and claims of overstated demand for its Prestige fragrances [1][2][3]. Group 1: Company Overview - Coty Inc. is one of the largest beauty companies globally, with a diverse portfolio that includes fragrance, color cosmetics, and skin and body care products [2]. - Prestige fragrances represent 60% of Coty's revenues, highlighting the significance of this segment to the company's financial health [2]. Group 2: Financial Performance - On August 20, 2025, Coty reported disappointing financial results for Q4 and FY 2025, citing issues such as weaknesses in U.S. execution, retailer inventory buildup, and challenges from previous fiscal year innovations [3]. - The company's stock price fell by $1.05, a decline of over 21%, from $4.86 to $3.81 per share following the announcement of these results [3]. Group 3: Market Dynamics - The investigation stems from claims that Coty misrepresented the demand for its products, as retailers were reportedly overstocked due to a decline in actual demand [2]. - Factors contributing to the slowdown in cosmetics sales included value-seeking consumer behavior, fatigue with innovation, and specific U.S. market challenges such as in-store theft measures and immigration policy changes [3].