Estée Lauder settles class action over gray-market China sales
Updated
Updated · Bloomberg Law · May 1
Estée Lauder settles class action over gray-market China sales
15 articles · Updated · Bloomberg Law · May 1
The agreement was reached on 2 April, the company said in third-quarter materials, in the US District Court for the Southern District of New York.
The suit alleged Estée Lauder misled investors through omissions and statements tied to diverted product sales in China’s grey market.
Judge Arun Subramanian last year refused to dismiss the case, finding investors had plausibly alleged misleading omissions and forward-looking statements and opinions.
Could Estée Lauder’s $84 million settlement spark a new wave of corporate transparency, or will companies just become better at legal disclaimers?
How might Estée Lauder’s string of legal troubles—from data breaches to environmental fines—reshape consumer trust and industry standards in beauty?