Ulta Beauty faces class action lawsuit in US court

A class action lawsuit has been filed against retailer Ulta Beauty in the US district court for the Northern District of Illinois on behalf of investors that purchased or acquired Ulta Beauty securities on the open market from 30 March 2016 through 23 February 2018.

According to US-based law firm Gainey McKenna & Egleston, the lawsuit seeks to recover compensable damages caused by the defendants’ violations of the Securities Exchange Act of 1934.

The complaint has alleged that the company was involved in the practice of repackaging returned cosmetics and re-shelving them alongside unblemished products to sell at full retail price.

On 9 February, media sources reported that a consumer class action lawsuit had been filed against the beauty retailer. It stated that several current and former employees of the company from other locations also confirmed the repackaging practice in their stores.

Established in 1990, the beauty retailer operates 1,074 retail stores across 48 states and the District of Columbia.

Ulta Beauty’s products include cosmetics, fragrances, skincare products, haircare products and salon services.

The company offers more than 20,000 products from nearly 500 brands, in addition to a full-service salon in every store.