Coty Inc. Faces Legal Probe After Disappointing Q2 Results and 15% Stock Crash

Coty Inc. (NYSE: COTY) is currently under investigation by the law firm Levi & Korsinsky, LLP following a significant decline in its financial performance and stock value. The investigation was prompted by the company's disclosure of a net loss amounting to $126.9 million for the second quarter of fiscal year 2026. Furthermore, Coty reported non-GAAP earnings per share of $0.14, failing to meet the consensus analyst estimate of $0.18. This earnings miss triggered a sharp sell-off, with the company's shares plunging approximately 15% to reach a new 52-week low of $2.66. The legal probe aims to determine if the company or its executives violated federal securities laws through their financial reporting. Investors are closely monitoring the situation as the beauty giant grapples with both legal scrutiny and deteriorating market valuation.