Estée Lauder To Hand $210,000,000 to Investors and Attorneys After Allegedly Overstating Growth Amid China Crackdown

A federal court has given final approval to a $210 million settlement resolving investor claims that Estée Lauder (EL) overstated its growth prospects amid a Chinese crackdown on a key resale market. The deal settles securities fraud claims against the beauty giant, former CEO Fabrizio Freda and former CFO Tracey Travis over forecasts issued as the company recovered from the pandemic, reports Law Commentary. U.S. District Judge Arun Subramanian of the Southern District of New York granted final approval on October 14th. He awarded $63 million in attorneys’ fees plus about $760,000 in expenses after trimming the lawyers’ requested cut from 32% to 30%, which leaves an extra $4.2 million for investors.

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