Estée Lauder to Settle Class Action Over Gray-Market China Sales

Estée Lauder Cos. reached a deal to end a securities class action over its gray-market sales in China, recording an $84 million loss contingency related to the settlement, the company said Friday.

The parties reached the agreement to settle the consolidated class action on April 2, according to a press release announcing third quarter results.

Judge Arun Subramanian of the US District Court for the Southern District of New York last year rejected Estée Lauder’s bid to dismiss the case, finding that investors successfully pleaded several “misleading omissions,” as well as forward-looking statements and opinions that were “mired in ...