Coty Faces $41 Million Lawsuit Over David Beckham Fragrance License Breaches

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5.3.2026

Quick Facts

DB Ventures seeks at least $41 million in damages for alleged license agreement violations by Coty
David Beckham fragrance sales grew 71.9% to $22.9 million between 2023-2025 despite alleged mismanagement
Coty’s stock has plummeted 78% over the past year amid multiple business challenges

Coty faces a $41 million lawsuit from DB Ventures, David Beckham’s fragrance company, over alleged breaches of their licensing agreement. The lawsuit was filed in New York on April 23, 2026, according to Reuters reporting on May 1.

DB Ventures accused Coty of mismanaging the brand by allowing David Beckham fragrances to be sold in gas stations through unauthorized distributors. The lawsuit describes these actions as “flagrant material breaches of the license agreement.”

“How could this possibly have happened? Desperation and greed,” the lawsuit states.

A separate lawsuit from Nautica makes similar allegations against Coty. Nautica argued that Coty’s “flagrant and persistent violation” of the license agreement had irreparably damaged its brand.

The lawsuits come despite strong sales performance for both brands under Coty’s management. David Beckham fragrance sales increased 71.9% between 2023 and 2025 to $22.9 million. Nautica sales grew 34.2% to $29.1 million over the same period.

Coty rejected the allegations. “The claims are without merit, and we will defend ourselves vigorously,” a company spokesperson said. Authentic Brands, which owns both brands, declined to comment.

The legal challenges add pressure to Coty’s already struggling business. The company withdrew its full-year guidance and warned that third-quarter adjusted EBITDA would fall to $100-$110 million, well below analysts’ average forecast of $201.6 million.

Coty’s stock hit record lows in early April. The company has lost multiple major licenses, including its upcoming departure from Gucci’s beauty business when that license transfers to L’Oreal.

Authentic Brands announced in January that it agreed to transfer the DB Ventures and Nautica fragrance licenses to Interparfums when Coty’s contracts expire in April 2028 for DB Ventures and January 2030 for Nautica.

Jean Madar, chairman and CEO of Interparfums, expects first-year sales of $70 million for Nautica and $50 million for Beckham’s brand upon assuming the licenses.

Interim CEO Markus Strobel replaced Sue Nabi in January after her five-year tenure. Strobel faces the challenge of turning around the CoverGirl owner while defending against lawsuits from key brand partners.