Kirby McInerney LLP Announces the Filing of a Securities Class Action on Behalf of The Estee Lauder Companies Inc. (EL) Investors
Investors have until February 5, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired The Estee Lauder Companies Inc. (“Estee Lauder” or the “Company”) (NYSE: EL) securities during the period from August 18, 2022 through May 2, 2023, inclusive. Investors have until February 5, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On November 2, 2022, Estee Lauder announced it was lowering its full year outlook for fiscal 2023. In pertinent part, the Company disclosed net sales of $3.93 billion for its first quarter, a decline of 11% from $4.39 billion in the prior-year period, including negative impacts from foreign currency. Additionally, organic net sales fell five percent. Estee Lauder attributed it to headwinds from the COVID-19 restrictions in China, supply chain disruptions, and record-high inflation. On this news, the price of Estee Lauder shares declined by $16.80 per share, or approximately 8.13%, from $206.76 per share to close at $189.96 on November 2, 2022.
On February 2, 2023, Estee Lauder reported its financial results for its second quarter of fiscal 2023. On the same day, the Company announced that it was lowering its outlook for fiscal year 2023. Despite the fact that emerging markets in other parts of Asia and the West delivered strong organic net sales growth, the Company blamed its lowered guidance on greater than anticipated challenges of COVID-19 restrictions in China. On this news, the price of Estee Lauder shares declined by $12.39 per share, or approximately 4.41%, from $280.80 per share to close at $268.41 on February 2, 2023.
Finally, on May 3, 2023, Estee Lauder announced weaker sales and profit for the year than estimated and accordingly cut its fiscal year outlook for a third consecutive time. On this news, the price of Estee Lauder shares declined by $42.52 per share, or approximately 17.34%, from $245.22 per share to close at $202.70 on May 3, 2023
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) the Company was unable to effectively manage its supply chain and product manufacturing, resulting in reduced revenues and margins, and increased inventory levels; and (ii) Estee Lauder’s supply chain management issues continued to exist, in addition to elevated inventory levels at retail partners.
If you purchased or otherwise acquired Estee Lauder securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at [email protected], or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: https://www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231213864596/en/