Bath & Body Works, Inc. (BBWI) Securities Class Action Lawsuit Update

A federal securities fraud class action asserted under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 has been filed against Bath & Body Works, Inc. (NYSE: BBWI), on behalf of all persons and entities that purchased or otherwise acquired its securities (including common stock trading on the NYSE under ticker BBWI) between June 4, 2024 and November 19, 2025, inclusive. Investors allege the company and senior executives misrepresented, through material misstatements and omissions, that "adjacent" categories-men's, lip, hair, and laundry-were driving growth and expanding the customer base. During the period, management repeatedly touted adjacencies and collaborations and promotional activities as proof of momentum. The story unraveled when results missed guidance for earnings per share (EPS) in August 2025 and, in November 2025, the company admitted the adjacencies strategy had not grown its total customer base and had diverted focus from core categories. Investors saw sharp stock declines on these disclosures.

Bath & Body Works, Inc. (BBWI) Securities Lawsuit Case Details

• Case Name: Lingam v. Bath & Body Works, Inc. et al.
• Case No.: 2:26-cv-00039-MHW-EPD
• Jurisdiction: U.S. District Court, Southern District of Ohio
• Filed on: January 12, 2026

Bath & Body Works, Inc. (BBWI) Company Profile

Bath & Body Works is a specialty retailer of home fragrance and body care products (publicly traded on the New York Stock Exchange as NYSE: BBWI). Beginning in fiscal year 2024, the company increasingly pushed product "adjacencies" beyond its core business, focusing on men's, lips, hair, and laundry, to drive customer acquisition and net sales growth and often supported by brand collaborations and promotions.

Bath & Body Works, Inc. (BBWI) Securities Lawsuit Class Period

June 4, 2024-November 19, 2025, inclusive.

All persons and entities that purchased or otherwise acquired Bath & Body Works securities (any Bath & Body Works securities, including common stock on the NYSE: BBWI) during the Class Period and who were damaged thereby.

Allegations in the Bath & Body Works, Inc. (BBWI) Securities Class Action Lawsuit

The lawsuit targets Bath & Body Works, Inc. and executives Gina Boswell (Chief Executive Officer until May 16, 2025), Daniel Heaf (Chief Executive Officer since May 16, 2025), and Eva C. Boratto (Chief Financial Officer at all relevant times), alleging violations of Section 10(b) and Rule 10b-5 and control person liability under Section 20(a) of the Securities Exchange Act of 1934. According to the complaint, they presented adjacencies, collaborations, and promotions as engines of growth and customer acquisition, while issuing positive statements about business momentum and guidance, including financial guidance for net sales and earnings per share, while failing to disclose material adverse facts.

The narrative begins on June 4, 2024, when the company told investors that year-over-year growth drivers included lip, hair, men's, and fine fragrance mist. That same day, through a Form 10-Q, management said it planned to deliver growth from core categories "supported by newness and seasonal storytelling" and a continued focus on adjacencies-men's, hair, lip, and laundry-to reach new customers (the Form 10-Q was filed under the Securities Exchange Act of 1934). As the story continued, on August 28, 2024, an investor presentation stated that men's, hair, lip, and laundry were "performing well," statements investors allege lacked a reasonable basis.

On February 27, 2025, CEO Gina Boswell said, "Our strategy is working," crediting product innovation and adjacencies for topline growth (net sales). Then, on May 29, 2025, the company again highlighted "our adjacent categories of Men's, Lips, Hair and Laundry" in another investor presentation, positioning them as key growth drivers and customer acquisition tools. Behind these statements, investors allege a different reality: the adjacencies, collaborations, and promotions strategy was not growing the customer base or delivering the net sales growth touted; as the strategy faltered, the company leaned on brand collaborations "to carry quarters" and mask otherwise weak underlying results; and increasingly relied on deeper and more frequent promotions; and the company was unlikely to meet its own prior guidance.

The Truth Emerges

The first break came on August 28, 2025, when Bath & Body Works released Q2 2025 financial results showing earnings per diluted share of $0.30, down 55.8% year over year and missing the company's prior low-end guidance by $0.03. Net income fell to $64 million, a 57.9% decline year over year, and the company cut full-year EPS guidance by $0.03 at the midpoint to a range of $3.28 to $3.53.

Then, on November 20, 2025, the company announced (a strategic transformation) and admitted the adjacencies, collaborations, and promotions approach had "not grown our total customer base," and reported Q3 2025 revenue declined 1% year over year and Q3 2025 net income declined 26%. Management's "diagnosis" stated that the focus on adjacencies had reduced investment in core categories, that collaborations had been used "to carry quarters," and that the company had become overly reliant on deeper, more frequent promotions, and the company revised full-year net sales guidance to negative high single digits. CEO Daniel Heaf added, "We are no longer going to invest in adjacencies. We are going to invest in our core," and signaled "selective category exits such as hair and men's grooming."

Market Reaction

Markets reacted swiftly. On August 28, 2025, following the earnings release, Bath & Body Works' stock (NYSE: BBWI) fell $2.18, or 6.9%, to close at $29.36 per share on unusually heavy trading volume. The reaction deepened on November 20, 2025, after the company disclosed the strategy reversal and admission that adjacencies had not grown the customer base, a second corrective disclosure. The stock fell $5.22, or 24.8%, to close at $15.82 per share, again on unusually heavy trading volume on the New York Stock Exchange.

Next Steps

• The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.
• The Court will then consider motion for class certification.
• The Court will later consider a Motion to Dismiss.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.