Bath & Body Works Complaint Overview
The class action lawsuit asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Bath & Body Works securities. The class action is pending in the U.S. District Court for the Southern District of Ohio. It is captioned Lingam v. Bath & Body Works, Inc., et al., No. 2:26-cv-00039.
If you lost money on your Bath & Body Works investment, you are encouraged to submit your information using the form on this page. You may also email adam@bfalaw.com or call 212.789.3619.
Why is Bath & Body Works Being Sued for Securities Fraud?
Bath & Body Works, Inc. has been sued for securities fraud following significant stock drops resulting from potential violations of the federal securities laws. The decline in Bath & Body Works’ stock price caused significant losses to investors.
Bath & Body Works is a specialty retailer of home fragrance and body care products. During the relevant period, the Company explored product categories, or “adjacencies,” beyond its core business. The key adjacencies included products for men, lips, hair, and laundry.
Bath & Body Works stated that customers were “responding favorably to innovation” including “adjacencies” of men’s, lip, and laundry. What’s more, the Company stated that its “strategy is working,” and that the Company was driving topline growth through “extending our reach through category adjacencies.”
As alleged, in truth, Bath & Body Works’ strategy of pursuing adjacencies was not growing the customer base or delivering the promised level of growth in net sales.
Why did Bath & Body Works’ Stock Drop?
On August 28, 2025, Bath & Body Works reported its Q2 2025 financial results. The Company revealed earnings per diluted share of $0.30, a decline of 55.8% year-over-year, and net income of $64 million, a decline of 57.9% year-over-year. The Company also announced it was cutting its full year guidance for earnings per diluted share by $0.03 at the midpoint, to $3.28 to $3.53.
This news caused the price of Bath & Body Works stock to drop $2.18 per share, or 6.9%, from a closing price of $31.54 per share on August 27, 2025, to $29.36 per share on August 28, 2025.
Then, on November 20, 2025, Bath & Body Works released its Q3 2025 financial results. The Company reported a 1% year-over-year revenue decline, missing guidance of 1-3% growth. The Company also announced it was slashing full year guidance for net sales from a previously positive 1.5%-2.7% to a negative “high single digits.”
Bath & Body Works further revealed that its strategy of pursuing “adjacencies, collaborations and promotions” had “not grown our total customer base.” The Company revealed that the focus on adjacencies had “reduced focus on investing in our core categories” and announced that it would exit certain adjacencies to focus on core categories.
This news caused the price of Bath & Body Works stock to drop $5.22 per share, or 24.8%, from a closing price of $21.04 per share on November 19, 2025, to $15.82 per share on November 20, 2025.
Bath & Body Works (BBWI) Stock Chart
NYSE online chart showing the Bath & Body Works (BBWI) stock drops following the August 28, 2025 and November 20, 2025 announcements.
What is the Bath & Body Works Leadership Deadline?
You may ask the Court no later than March 13, 2026, to appoint you as Lead Plaintiff through counsel of your choice.
To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
How Do I Submit My Information?
If you lost money when Bath & Body Works securities dropped in price, you are encouraged to submit your information using the form on this page to speak with an attorney about your rights.
You can also contact:
Adam McCall
adam@bfalaw.com
212.789.3619
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of the class action lawsuit. The firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS.
BFA attorneys have been named “Elite Trial Lawyers” by the National Law Journal, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.
BFA’s notable successes include a recovery of over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
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