|By PR Newswire||
|March 21, 2014 04:48 PM EDT||
NEW YORK, March 21, 2014 /PRNewswire/ -- Pomerantz LLP has filed a class action lawsuit against Coty, Inc. ("Coty" or the "Company")(NYSE: COTY) and certain of its officers. The class action, filed in United States District Court, Northern District of California, and docketed under 14-cv-001107, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Coty securities since its June 13, 2013 Initial Public offering ("IPO"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Coty securities during the Class Period, you have until April 14, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Coty Inc., together with its subsidiaries, is engaged in the manufacture, marketing, and distribution of women's and men's fragrances, color cosmetics, and skin and body care related products worldwide. Coty Inc. was founded in 1904 and is based in New York, New York.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) during the quarter leading up to the IPO, consumption of Coty's products was materially declining and retailers were returning products to Coty; (ii) in the months leading up to the IPO, Coty's sales growth of nail products such as Sally Hansen had materially declined to the point where sales of those products were flat and were negative in July 2013; (iii) mass retailers were not replenishing inventory, or were stocking less inventory, a material negative trend that would cause a material decline in Coty's revenue; and (iv) as a result of the above, the Company's Registration Statement, which represented that Coty, at the time of the IPO, was experiencing growth in net revenues and market share, was materially false and misleading.
In the months leading up to the IPO, Coty's sales growth of nail products such as Sally Hansen had materially declined. By the time of the IPO, sales of Coty's nail products were flat and were negative in July 2013. As a result of the decline in consumption of Coty products and mass retailers destocking of Coty inventory, such mass retailers were not replenishing inventory, or were stocking less inventory, a material negative trend that would cause a material decline in Coty's revenue of approximately $23 to $25 million in July and August 2013.
Since the IPO on June 13, 2013, Coty stock fell $3.39 or over 19% from the IPO price of $17.50 to close at $14.11 on February 19, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP