Beauty company Coty is facing legal trouble from DB Ventures, the business entity behind soccer legend David Beckham’s fragrance line, according to court filings reviewed by Reuters.
The lawsuit, filed April 23 in New York, accuses Coty of serious violations of their licensing contract and claims the company damaged the Beckham brand by allowing fragrances to be distributed through gas stations.
“How could this possibly have happened? Desperation and greed,” the legal filing states.
This legal challenge represents yet another blow to Coty’s fragrance division, which serves as the company’s primary source of income.
DB Ventures isn’t alone in its complaints against Coty. Nautica has also filed a similar lawsuit against the beauty company. Both DB Ventures and Nautica are owned by American conglomerate Authentic Brands.
Nautica’s legal action claims Coty’s “flagrant and persistent violation” of their licensing deal has caused permanent harm to the Nautica brand. Both lawsuits contend that Coty worked with unauthorized distributors.
When asked about the pending litigation, a Coty representative responded: “Coty does not comment on ongoing legal matters. The claims are without merit, and we will defend ourselves vigorously.”
Authentic Brands chose not to provide comment.
The troubles pile up for interim CEO Markus Strobel, who took over from Sue Nabi in January after her five-year tenure ended. Strobel, a former Procter & Gamble executive, now faces the challenge of reviving the CoverGirl parent company.
Coty’s stock price reached historic lows in early April and has plummeted 78% over the past year. The company has already cautioned investors about disappointing third-quarter results, scheduled for release next Tuesday.
In February, Coty pulled back its annual projections and warned that third-quarter adjusted EBITDA would likely fall between $100-$110 million, significantly below the $201.6 million analysts had predicted.
While fragrances generate most of Coty’s revenue, this business segment is contracting as the company prepares to lose important licenses. The most significant loss will be Gucci’s beauty business, which analysts expect to end in 2028 when it moves to competitor L’Oréal.
Adding to these challenges, Authentic Brands announced in January that it had decided to transfer the licensing rights for DB Ventures and Nautica fragrances to Interparfums when current Coty agreements end. The DB Ventures contract expires in April 2028, while the Nautica deal runs until January 2030.
Despite the legal disputes, both fragrance lines have shown strong sales growth. David Beckham fragrance sales jumped 71.9% between 2023 and 2025, reaching $22.9 million, according to Global Fusion data from Nielsen’s market intelligence platform. Nautica sales increased 34.2% to $29.1 million during the same period.
Interparfums declined to comment on the situation.
The pressure on Coty intensified last month when the chairman of French beauty giant L’Oréal publicly criticized the smaller company, claiming Coty lacks a viable business model.
Strobel is currently developing a new strategic direction, promising to invest more resources in key brands as the company attempts to boost sales. Coty has identified Kylie Cosmetics and its long-term partnerships with Burberry and Marc Jacobs as valuable assets moving forward.
The company initiated a comprehensive review of its consumer cosmetics division in September, exploring various options including partnerships, sales of brands, and potential spin-offs for products like Rimmel and Max Factor.
