| Company: | The Estee Lauder Companies Inc. |
| Ticker Symbol: | NYSE: EL |
| Class Period: | April 28, 2005 to October 25, 2005 |
| Date Filed: | Mar-30-06 |
| Lead Plaintiff Deadline: | Apr-28-06 |
| Court: | Southern District, NY |
| Allegations: |
A class action lawsuit was filed today on behalf of purchasers of the securities of The Estee Lauder Companies Inc. ("Estee Lauder" or the "Company") (NYSE: EL), between April 28, 2005 and October 25, 2005, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").
The action, numbered 06-cv-2505, is pending before the Honorable Lewis A. Kaplan in the United States District Court for the Southern District of New York against defendants Estee Lauder, William P. Lauder (CEO and President), Ronald S. Lauder (Director), Leonard A. Lauder (Chair), Aerin Lauder (Senior VP and Director), Daniel J. Brestle (COO), Patrick Bousquet-Chavanne (Group President) and Richard W. Kunes (CFO).
The Complaint alleges that Estee Lauder is a global manufacturer of skin care, makeup, fragrance, and hair care products. The complaint further alleges that, at the commencement of the Class Period, the Company's market share was decreasing and that, rather than reverse this negative trend, or fully disclose it, defendants launched a largely successful campaign that employed channel stuffing and the dissemination of materially false and misleading statements to prop up reported revenues and earnings, and the Company's share price, long enough for Estee Lauder insiders to sell millions of their personally held Estee Lauder shares to unsuspecting investors at prices that were artificially inflated by defendants' false and misleading statements.
The truth began to emerge on September 19, 2005 when defendants disclosed that the Company would not meet its guidance for the first half of fiscal 2006. On this disclosure, the Company's stock fell 9%, from $40.51 to $36.05 per share. The stock, however, continued to trade at artificially inflated levels until October 26, 2005 when defendants were forced to disclose that, for the first quarter of fiscal 2006, the Company would earn only $61.8 million, or $0.28 per share, down 38% from the previous year's earnings of $95.7 million, or $0.41 per share, on essentially flat sales. These results were well below analysts' revised consensus earnings estimate of $0.32 cents a share on revenue of $1.54 billion. Following this disclosure of the Company's results and lowered guidance, the Company's share price fell to $30.71. By this time, Estee Lauder insiders had, during the Class Period, sold 3,380,399 shares of their Estee Lauder common stock to unwitting investors for proceeds of $88,077,150.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
At LawyersandSettlements.com, it is our goal to keep you informed about important legal cases and settlements. We are dedicated to helping you resolve your legal complaints.
The action, numbered 06-cv-2505, is pending before the Honorable Lewis A. Kaplan in the United States District Court for the Southern District of New York against defendants Estee Lauder, William P. Lauder (CEO and President), Ronald S. Lauder (Director), Leonard A. Lauder (Chair), Aerin Lauder (Senior VP and Director), Daniel J. Brestle (COO), Patrick Bousquet-Chavanne (Group President) and Richard W. Kunes (CFO).
The Complaint alleges that Estee Lauder is a global manufacturer of skin care, makeup, fragrance, and hair care products. The complaint further alleges that, at the commencement of the Class Period, the Company's market share was decreasing and that, rather than reverse this negative trend, or fully disclose it, defendants launched a largely successful campaign that employed channel stuffing and the dissemination of materially false and misleading statements to prop up reported revenues and earnings, and the Company's share price, long enough for Estee Lauder insiders to sell millions of their personally held Estee Lauder shares to unsuspecting investors at prices that were artificially inflated by defendants' false and misleading statements.
The truth began to emerge on September 19, 2005 when defendants disclosed that the Company would not meet its guidance for the first half of fiscal 2006. On this disclosure, the Company's stock fell 9%, from $40.51 to $36.05 per share. The stock, however, continued to trade at artificially inflated levels until October 26, 2005 when defendants were forced to disclose that, for the first quarter of fiscal 2006, the Company would earn only $61.8 million, or $0.28 per share, down 38% from the previous year's earnings of $95.7 million, or $0.41 per share, on essentially flat sales. These results were well below analysts' revised consensus earnings estimate of $0.32 cents a share on revenue of $1.54 billion. Following this disclosure of the Company's results and lowered guidance, the Company's share price fell to $30.71. By this time, Estee Lauder insiders had, during the Class Period, sold 3,380,399 shares of their Estee Lauder common stock to unwitting investors for proceeds of $88,077,150.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
Register your Securities Complaint
If you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible class action lawsuit. Please fill in our form on the right to submit your complaint and we will have this lawyer review your securities complaint.At LawyersandSettlements.com, it is our goal to keep you informed about important legal cases and settlements. We are dedicated to helping you resolve your legal complaints.
