The Estée Lauder Companies Inc. (NYSE: EL) Investor Reminder: Schubert Jonckheer Investigating Possible False Claims, $306 Million in Stock Sales

Schubert Jonckheer & Kolbe LLP reminds The Estée Lauder Companies Inc. (NYSE: EL) investors that the firm is investigating potential legal claims relating to alleged false statements hiding the company’s reliance on prohibited gray-market sales of its products in China and significant insider stock sales totaling $306 million. Current shareholders are encouraged to contact the firm.

On March 31, 2025, Judge Arun Subramanian of the U.S. District Court for the Southern District of New York ruled that key claims in a securities class action complaint against Estée Lauder, its former CEO, and former CFO could move forward. The lawsuit alleges that between February 2022 and October 2023, Estée Lauder misled investors about the sustainability of its sales in China which partly occurred through prohibited gray-market resellers called daigou. Judge Subramanian found that the complaint sufficiently alleged that the defendants made false and misleading statements about these matters with an intent to defraud. During this period, various company insiders sold $306 million of Estée Lauder stock. After the full truth came out in November 2023 that the company’s declining sales were partly the result of China’s crackdown on daigou, Estée Lauder’s stock fell 19%. 

We are investigating potential wrongdoing by Estée Lauder’s directors and officers in connection with these allegations.

If you own stock in Estée Lauder and want more information about your legal rights, please fill out the form below.