Bath & Body Works Faces Class Action Lawsuit for Securities Fraud
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Globenewswire
- Class Action Filed: Leading securities law firm Bleichmar Fonti & Auld LLP has initiated a class action lawsuit against Bath & Body Works and certain executives for securities fraud, following significant stock drops that indicate serious investor concerns regarding corporate governance and compliance with federal securities laws.
- Stock Price Volatility: On August 28, 2025, Bath & Body Works reported disappointing Q2 results and cut its full-year earnings guidance by $0.03 to a range of $3.28 to $3.53, causing its stock to plummet from $31.54 to $29.36, a 6.9% drop, reflecting market disappointment in the company's performance.
- Strategic Missteps Revealed: In its Q3 report on November 20, 2025, the company admitted that its strategy of pursuing product adjacencies failed to grow its customer base, leading to a dramatic 24.8% decline in stock price from $21.04 to $15.82, highlighting failures in market positioning and product innovation.
- Legal Options and Risks: Investors are encouraged to apply to lead the case by March 16, 2026, indicating that legal avenues may provide remedies for affected investors, while also reflecting the legal and financial risks that could impact the company's future market performance.
Get Free Real-Time Notifications for Any Stock
Monitor tickers like BBWI with instant alerts to capture every critical market movement.
Sign up for free to build your custom watchlist and receive professional-grade stock notifications.
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: 20.730
Low
15.00
Averages
20.14
High
26.00
Current: 20.730
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 for Securities Fraud
- Class Action Filed: Leading securities law firm Bleichmar Fonti & Auld LLP has initiated a class action lawsuit against Bath & Body Works and certain executives for securities fraud, following significant stock drops that indicate serious investor concerns regarding corporate governance and compliance with federal securities laws.
- Stock Price Volatility: On August 28, 2025, Bath & Body Works reported disappointing Q2 results and cut its full-year earnings guidance by $0.03 to a range of $3.28 to $3.53, causing its stock to plummet from $31.54 to $29.36, a 6.9% drop, reflecting market disappointment in the company's performance.
- Strategic Missteps Revealed: In its Q3 report on November 20, 2025, the company admitted that its strategy of pursuing product adjacencies failed to grow its customer base, leading to a dramatic 24.8% decline in stock price from $21.04 to $15.82, highlighting failures in market positioning and product innovation.
- Legal Options and Risks: Investors are encouraged to apply to lead the case by March 16, 2026, indicating that legal avenues may provide remedies for affected investors, while also reflecting the legal and financial risks that could impact the company's future market performance.
Continue Reading
Bath & Body Works Class Action Reminder
- Class Action Notice: Rosen Law Firm reminds investors who purchased Bath & Body Works (NYSE: BBWI) securities between June 4, 2024, and November 19, 2025, to apply as lead plaintiffs by March 16, 2026, to potentially receive compensation without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that Bath & Body Works made materially false and misleading statements during the class period, failing to disclose that its strategy of 'adjacencies, collaborations, and promotions' was not effectively growing its customer base, resulting in investor losses when the truth emerged.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked No. 1 by ISS Securities Class Action Services in 2017, showcasing its strong track record in this field.
- Investor Guidance: Investors are advised to carefully select qualified counsel with a proven track record, avoiding firms that merely act as intermediaries, to ensure effective legal representation in the class action.
Continue Reading