U.S. District Judge Arun Subramanian approved Estée Lauder’s $210 million investor settlement Oct. 14, setting attorneys’ fees at 30% of the fund, or $63 million, below the 32% counsel requested.
Lead counsel’s requested percentage would have amounted to $67.2 million on the fund’s principal. The approved fee is $4.2 million lower. That figure is the difference between the requested and approved fees, not a separate payment earmarked for investors; the fund is also subject to expenses and other awards.
The court approved $759,672.80 in litigation expenses, also with interest. It separately authorized $21,995.21 in aggregate reimbursements to lead plaintiffs for costs tied to representing the class.
An objector challenged the fee and expense request. The judge said the objector had no loss tied to the alleged conduct and therefore lacked standing; separately, the court rejected the fee challenge on its merits.
Investors accused Estée Lauder, former CEO Fabrizio Freda and former CFO Tracey T. Travis of misleading shareholders about the company’s growth outlook and its reliance on gray-market daigou sales in China. On March 31, 2025, Subramanian denied the defendants’ motion to dismiss, allowing the main claims to proceed. The defendants have denied wrongdoing.
The final judgment says the settlement is not an admission of liability. It bars the claims covered by the agreement from being brought again and leaves settlement administration under the court’s control.
The class covers people and entities that acquired Estée Lauder common stock from Feb. 3, 2022, through Feb. 3, 2025, and allegedly suffered losses. The deadline to submit claims was Aug. 5, 2026.
