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EL.US
id: 906
Estée Lauder ($EL) $210M Investor Settlement
The settlement terms have been submitted to the court for approval.
$210,000,000
Cash SettlementS.D. New York
Court1:23-cv-10669
Case number02/03/2022
Class period Start02/03/2025
Class period EndEstée 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.
Case Type
US Securities Class Action
Case Status
Stipulative Settlement
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.68
Filing date
12/07/2023
Lead Plaintiff Deadline
02/05/2024
Plaintiffs
Bridgett McAlice
Attorneys
Levi & Korsinsky
Defendants
Fabrizio Freda, Tracey Travis
Administrator
EPIQ
Attorney fee
$68,075,000
Trades matching type
FIFO
Frequently Asked Questions
Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How long does the payout process take?
How much will my payment be?
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