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EL.US
id: 906

Lauder Companies Inc. (EL) Failed Guidance Case

S.D. New York
Court
1:23-cv-10669
Case number
18 Aug 2022
Class period Start
02 May 2023
Class period End
05 Feb 2024
Lead Plaintiff motion deadline
  • In May 2023, Estée Lauder announced weak sales and cut its outlook contrary to previous guidance, again.
  • On this news, $EL fell by 17%, losing $9.8B+ of shareholder value.
  • The first investor already filed the initial claim over misleading in New York court.
On May 3, 2023, Estée Lauder announced weaker sales and profit for the year than previously estimated and cut its outlook for a third consecutive time.

Management attributed the further reduction in guidance to its Asia travel retail business, which continued to be pressured by the slower-than-anticipated recovery from the COVID pandemic.

On this news, $EL fell by 17% and lost over $9.8 billion of its market capitalization, seriously damaging shareholders.

Previously, Estée forecasted net sales to increase between 3% and 5% versus the prior-year period, reported diluted net earnings per common share are projected to be between $7.11 and $7.33, and adjusted diluted earnings per common share are expected to increase between 5% and 7% on a constant currency basis.

Considering all the representations, Investors have reasons to suspect that Estée Lauder misguided them by providing unrealistic forecasts. One of the affected investors has already filed the initial claim in NY court.
Case Status
Motion to dismiss
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
03 May 2023
Filing date
07 December 2023
Lead Plaintiff Deadline
05 February 2024
Collecting participants…

Estee Lauder Companies Inc

The Estée Lauder Companies Inc. manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, serums, cleans...

    Ticker
    EL.US
    ISIN
    US5184391044
    CIK
    1001250
    Sector
    Consumer Defensive
    Industry
    Household & Personal Products
    Country
    USA
    Address
    767 Fifth Avenue, New York, NY, United States, 10153