In May 2019, Kaskela Law filed a stockholder derivative and class action complaint on behalf of Coty Inc. and the company’s stockholders against JAB Holding Co. and numerous individual defendants. In re Coty Inc. Stockholder Litig., C.A. No. 2019-0336-LWW (Del. Ch.).
Among other things, the complaint alleged that Coty’s directors breached their fiduciary duties in connection with their response to a partial tender offer (the “Tender Offer”) for Coty shares by an affiliate of JAB Holding Company S.à r.l., and for causing Coty to breach a stockholders agreement in connection with the Tender Offer (the “Stockholders Agreement”).
On July 13, 2020, Chancellor Bouchard denied defendants’ motions to dismiss the complaint. A copy of the Court’s Memorandum Opinion is available at https://courts.delaware.gov/Opinions/Download.aspx?id=309430.
In June 2023, the Court approved of a settlement of the action in the amount of $35 million.