Coty Investors Sue Over P&G, Kylie Jenner Mergers (1)

Beauty company Coty Inc. misled investors about its ability to successfully evaluate and execute acquisitions of Procter & Gamble’s Specialty Beauty Business and Kylie Cosmetics, a new class suit filed in New York federal court alleges.

Coty announced the completion of a merger with P&G’s beauty line for $12.5 billion in 2016 and, in 2019, it acquired a 15% stake in Kylie Jenner’s beauty company for $600 million.

Both acquisitions were later revealed to be overvalued, according to the suit filed in the U.S. District Court for the Southern District of New York.

The shareholders say in their suit against ...