Estee Lauder Companies Inc. (NYSE: EL)

Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Estee Lauder Companies Inc. (NYSE: EL).

Estee Lauder is a prestige beauty company with worldwide sales, part of which occur in China and South Korea through what are known as daigou – prohibited gray-market resellers that buy luxury goods at duty-free prices and sell them at a mark-up. In 2021, the Company’s largest customer, China Duty Free Group, revealed a severe crack down on daigou, prohibiting sales into the gray market. Despite the Company attributing the resulting sales decline to anything but the crack down, in November 2023, it disclosed that “changes in government and retailer policies related to unstructured market activity” were among the primary causes of the decline in sales.

Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information, violating federal securities laws. Recently, the court presiding over the case denied the Company’s motion to dismiss, allowing the case to continue.

KSF’s investigation is focusing on whether Estee Lauder’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.

If you have information that would assist KSF in its investigation, or have been a long-term holder of Estee Lauder shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-833-938-0905 or email KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com), or fill out the form on this page.