The parent company of Kylie Cosmetics is reportedly being sued for allegedly “inflating” the value of Kylie Jenner’s beauty brand and deceiving shareholders.
According to the Fashion Law, Coty shareholder Crystal Garrett-Evans proposed a class action lawsuit on September 4 claiming Coty “overpaid” for the acquisitions of the Procter & Gamble Company and Kylie Cosmetics.
Filed in a New York federal court, Garrett-Evans argues that Coty engaged in “a fraudulent scheme and course of business that operated [to deceive] purchasers of Coty shares by disseminating materially false and/or misleading statements and/or concealing material adverse facts … about Coty’s business, operations, and prospects.”
Yikes! To get you up to speed, Coty became the parent company of Kylie Cosmetics back in 2019, when they purchased a 51% stake in the reality star’s brand for $600 million.
This lawsuit comes hot on the heels of news that Kylie’s “youngest self-made billionaire” status was removed by Forbes.
Notably, the Forbes’ article published in May, which claimed Kylie had been “inflating the size and success of her [Kylie Cosmetics] business. For years,” was cited in the lawsuit.
The lawsuit claims, after Forbes’ findings that Kylie was worth “just under $900 million," Coty stock prices fell $0.56, or over 13%.
Garrett-Evans says that she and other class members “have suffered significant losses and damages.”
The Keeping Up With The Kardashians star has yet to release a statement.