Estée Lauder Faces Shareholder Lawsuit Over Alleged Gray Market Practices

A shareholder lawsuit filed in the Southern District of New York alleges that Estée Lauder utilized prohibited gray market resale channels and 'daigou' resellers to boost travel-retail sales in Asia. Plaintiff Portia McCollum is suing 13 current and former directors, including Chairman William P. Lauder, seeking governance reforms and the repayment of compensation. The complaint claims the company exploited duty-free tax exemptions on Hainan island by knowingly supplying daigou buyers, who resell authentic goods at a margin below official Chinese retail prices.