Coty Leaders Hyped ‘Improving’ Trends Before Setback, Suit Says

Coty Inc.‘s board and top executives offered bullish sales projections for the company’s beauty products in November, only to report disappointing metrics in February, a shareholder alleges.

The poor financial figures, withdrawn guidance, and ensuing stock selloff harmed the company by subjecting it to a proposed investor class action and other costs, Guy Moar says. He filed his derivative suit Thursday in the US District Court for the Southern District of New York.

The company, founded in 1904, makes and distributes fragrances, cosmetics, and skin-care products for brands such as Burberry, Calvin Klein, Gucci, Adidas, and Vera Wang.

Coty’s ...