Estée Lauder ($EL) $210M Investor Settlement
Estée Lauder agreed to a $210M settlement to resolve securities claims alleging misleading statements and omissions about its travel retail business and reliance on daigou sales.
Outline:
Estée Lauder will pay $210M to settle investor claims. The settlement covers purchases of publicly traded common stock from February 3, 2022, through February 3, 2025. Investors claimed they were misled about the strength and sustainability of the company’s travel retail business. The issue centered on guidance cuts, slower recovery in Asia travel retail, and alleged reliance on daigou sales.
Timeline:
May 3, 2023: Estée Lauder announced weaker yearly sales and profit expectations and cut its outlook for a third consecutive time.
May 3, 2023: $EL fell 17%, wiping out more than $9.8B in market value.
November 1, 2023: Investors say Estée Lauder’s previously undisclosed reliance on daigou to generate travel retail sales was revealed.
April 1, 2026: The parties accepted a mediator’s proposal to settle the investor claims.
May 6, 2026: The parties executed the $210M settlement agreement.
Background:
Estée Lauder had previously projected net sales growth and earnings growth. Investors later said those forecasts were unrealistic because the company’s Asia travel retail business was still facing pressure.
On May 3, 2023, Estée Lauder announced weaker sales and profit expectations for the year. The company also cut its outlook for a third consecutive time.
Management attributed the reduction to its Asia travel retail business. That business continued to be affected by a slower-than-anticipated recovery from the COVID pandemic.
Following the update, Estée Lauder shares fell 17%. The drop erased more than $9.8B in market capitalization and damaged shareholders.
Investors alleged that Estée Lauder did not properly warn the market about the weakness in Asia travel retail and the sustainability of its sales. The settlement also covers claims tied to the company’s alleged reliance on daigou and unstructured sales.
What Can Investors Expect Now?
Estée Lauder agreed to a $210M settlement to resolve securities claims alleging misleading statements and omissions about its travel retail business and reliance on daigou sales.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Frequently Asked Questions
All persons and entities that purchased or otherwise acquired the publicly traded common stock of The Estée Lauder Companies Inc. during the period from February 3, 2022 through February 3, 2025, both dates inclusive, and were allegedly damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.68 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $2.72 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.