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Plaintiffs alleged ELC funnelled massive product volumes through daigou channels during the COVID-19 pandemic.
April 3, 2025
By: TOM BRANNA
Editor
A federal court has allowed a securities fraud lawsuit filed against The Estée Lauder Companies to proceed. Judge Arun Subramanian of the U.S. District Court for the Southern District of New York found shareholder plaintiffs have plausibly alleged that the beauty giant misled investors by “cover[ing] up” its practice of funneling massive product volumes through gray market channels to sustain sales amid global store closures and travel restrictions during the COVID-19 pandemic. The decision allo...
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