Estee Lauder (EL) is facing a lawsuit accusing the cosmetic company of defrauding shareholders by concealing its reliance on gray-market sales in China, according to a ruling by a federal judge in Manhattan on Monday.
US District Judge Arun Subramanian determined that shareholders had identified several misleading omissions and 'half-truths' in the company's disclosures, particularly regarding the negative impact of a January 2022 crackdown on the 'daigou' gray market.
The lawsuit alleges that Estee Lauder concealed the detrimental effects of the crackdown until Nov. 1, 2023, causing a 19% drop in its stock price.
Judge Subramanian said that Estee Lauder attributed the decline in sales to factors other than the crackdown while reassuring investors that a recovery was imminent.
The defendants also included in the lawsuit are former CEO Fabrizio Freda and former CFO Tracey Travis.
The class action covers shareholders from Feb. 3, 2022, to Oct. 31, 2023.
Estee Lauder did not immediately respond to MT Newswires' request for comment.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。
热议股票
没有相关数据