# A preliminary all-cash settlement of the proposed class action was filed on Thursday in Manhattan federal court.

*business · news · 2026-05-07 · Reuters*

## Key points

- Estee Lauder agreed to a preliminary all-cash settlement over allegations it concealed daigou-related sales risks.
- Shareholders allege Estee failed to promptly disclose the impact of China's 2022 crackdown on daigou sales.
- Judge Subramanian previously rejected Estee's dismissal attempt, citing omitted negative sales information.
- Shareholder lawyers will request up to 32% of the settlement fund, amounting to $67.2 million in fees.

**Companies:** Estee Lauder
**Countries:** USA, China

[Read the full story on Reuters](https://www.reuters.com/sustainability/boards-policy-regulation/estee-lauder-reaches-210-million-settlement-lawsuit-over-china-sales-2026-05-07/)

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