Estee Lauder Sued Over Alleged Supply Chain Misrepresentations

The Estee Lauder Companies Inc. and two top executives allegedly misled investors about the company’s supply chain issues and mismanagement of inventory levels in Asia and the United States, according to a shareholder class action filed Thursday in New York.

The cosmetics giant allegedly hid the impact of these problems for nearly a year, providing “overwhelmingly positive” revenue and sales projections in disclosures that caused shareholders to purchase Estee Lauder stock at artificially inflated prices, according to the complaint filed in US District Court for the Southern District of New York.

Estee Lauder’s problems began to publicly emerge on Nov. ...