Settlement Reached for $210 Million against The Estée Lauder Companies Inc.

Labaton Keller Sucharow serves as court-appointed Lead Counsel in a securities class action against The Estée Lauder Companies, Inc. (Estée Lauder or the Company), a leading manufacturer and seller of skincare, makeup, fragrance, and haircare products worldwide.  Estée Lauder’s business includes its travel retail business segment, which sells Estée Lauder products in duty-free locations such as airports and cruise ships.

The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.  As alleged in the Complaint, a resale industry known as daigou exists in certain Asian markets whereby resellers bulk purchase luxury goods at reduced, duty-free prices, and resell them to end-consumers in mainland China at prices below retail.  Lead Plaintiffs alleged that Defendants made materially false and misleading statements and omissions during the Class Period regarding the source and sustainability of Estée Lauder’s success in its travel retail business, specifically with respect to Estée Lauder’s allegedly undisclosed reliance on daigou to generate high volume, unsustainable sales.

On March 31, 2025, Labaton Keller Sucharow overcame Defendants’ Motion to Dismiss, with U.S. District Judge Arun Subramanian noting that “Plaintiffs successfully point to several misleading omissions, and even the allegedly forward-looking statements and opinions at issue are mired in half-truths.”

Discovery commenced in April 2025.  Defendants and third parties collectively produced approximately 124,000 documents (approximately 684,000 pages).  Lead Plaintiffs filed their motion for class certification in July 2025.  In connection with Lead Plaintiffs’ motion, Defendants conducted depositions of Lead Plaintiffs’ class certification expert, the Lead Plaintiffs, and one third-party investment manager.

The Parties reached an agreement to settle the matter for $210 million (pending court approval) in May 2026.

The case is In re The Estée Lauder Companies, Inc. Securities Litigation, No. 23-cv-10669 (S.D.N.Y.).  Labaton Keller Sucharow represents Lead Plaintiffs Macomb County Employees’ Retirement System, Macomb County Retiree Health Care Fund, and Wayne County Employees’ Retirement System.

Submit Claim Form
If you purchased or otherwise acquired the publicly traded common stock of The Estée Lauder Companies Inc. during the period from February 3, 2022 through February 3, 2025, both dates inclusive, and were allegedly damaged thereby, you may be entitled to a payment from a class action settlement.  To be eligible for a payment, you must submit a Claim Form to the Claims Administrator by August 5, 2026.  Please read the linked Notice for all your options and deadlines.

Settlement Hearing
A Settlement Hearing is scheduled to be held on August 20, 2026, at 2:00 p.m. (ET) at the United States District Court, Southern District of New York, Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, Courtroom 15A, New York, NY 10007.