Bath & Body Works Faces Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Source: Globenewswire
- Lawsuit Background: Bath & Body Works is facing a class action lawsuit for alleged securities fraud covering the period from June 4, 2024, to November 9, 2025, aiming to recover losses for affected investors, which could negatively impact the company's reputation and stock price.
- False Statements Allegations: The complaint alleges that the company relied on brand collaborations to mask weak financial results as its strategy of 'adjacencies, collaborations, and promotions' failed to grow the customer base, severely undermining investor confidence in the company's prospects.
- Financial Guidance Missteps: The lawsuit highlights that the company is unlikely to meet its previously issued financial guidance, indicating that the positive statements made by the defendants lacked a reasonable basis, potentially leading to a decline in shareholder value due to lowered future earnings expectations.
- Investor Rights Protection: Affected investors have until March 13, 2026, to request to be appointed as lead plaintiff, with no costs required to participate in the lawsuit, demonstrating the legal team's commitment to protecting investor rights.
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Analyst Views on BBWI
Wall Street analysts forecast BBWI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BBWI is 20.14 USD with a low forecast of 15.00 USD and a high forecast of 26.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 21.800
Low
15.00
Averages
20.14
High
26.00
Current: 21.800
Low
15.00
Averages
20.14
High
26.00
About BBWI
Bath & Body Works, Inc. is a global omnichannel retailer focused on personal care and home fragrance. The Company offers a range of fragrances for the body and home, including selling collections for 3-wick candles, home fragrance diffusers, fine fragrance mists, liquid hand soaps, body lotions and body creams. It delivers customers their fragrances in multiple forms and categories. The Company sells merchandise through its retail stores in the United States and Canada, and through its Websites and other channels, under the Bath & Body Works, White Barn and other brand names. The Company’s international business is conducted through franchise, license and wholesale partners. It provides in-store experiences at more than 1,890 Company-operated Bath & Body Works locations in the United States and Canada, more than 525 international franchised locations and an online storefront at bathandbodyworks.com. Additionally, it offers a buy online pick-up in-store (BOPIS) option.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bath & Body Works Faces Class Action Lawsuit
- Lawsuit Background: Robbins LLP reminds shareholders of a class action filed on behalf of investors who purchased Bath & Body Works (BBWI) securities between June 4, 2024, and November 19, 2025, alleging the company misled investors regarding its business strategy and growth prospects.
- Poor Financial Performance: The Q3 2025 financial results revealed a 1% year-over-year revenue decline, missing the 1-3% growth guidance, and a 26% drop in net income to $77 million, indicating insufficient investment in core business areas.
- Strategic Shift: The company acknowledged that its strategy of
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Bath & Body Works Securities Fraud Class Action Reminder
- Lawsuit Background: Bath & Body Works is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with plaintiffs being investors who purchased securities between June 4, 2024, and November 19, 2025, claiming misrepresentations regarding the company's financial guidance, which may have led to investor losses.
- Investor Action: Investors must file papers by March 13, 2026, to serve as lead plaintiffs in the class action, representing other members in the litigation, although those who choose not to participate can still share in any potential recovery.
- Legal Fee Arrangement: All legal representation is on a contingency fee basis, meaning shareholders incur no fees or expenses, which reduces the financial burden on investors and encourages more affected shareholders to take action.
- Law Firm Background: Bernstein Liebhard LLP has recovered over $3.5 billion for clients since 1993 and has been recognized multiple times on The National Law Journal’s “Plaintiffs’ Hot List,” demonstrating its strong reputation and capability in protecting investor rights.
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