Bath & Body Works Faces Securities Class Action After Major Stock Drop

On January 22, 2026, it was announced that Bath & Body Works, Inc. (NYSE: BBWI), the well-known specialty retailer of home fragrance and body care products, has been named in a newly filed securities class action lawsuit following a significant decline in its stock price. This legal action stems from allegations that the company and certain of its senior executives violated federal securities laws, resulting in substantial losses for investors.

About the Lawsuit

The class action lawsuit was filed in the U.S. District Court for the Southern District of Ohio and is captioned Lingam v. Bath & Body Works, Inc., et al. Investors who purchased or otherwise acquired Bath & Body Works securities during the specified class period are potentially part of the lawsuit. The case asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, which relate to alleged misrepresentations and omissions of material information.

Who Is Eligible?

Investors who purchased BBWI stock during the class period — typically defined by the court filings — and suffered financial losses may qualify to participate in the class action. Eligible investors have the opportunity to ask the court to appoint them as a Lead Plaintiff, which is a representative role in directing the litigation on behalf of all class members.

Allegations and Causes of the Stock Plunge

Plaintiffs allege that Bath & Body Works made positive statements about its business strategy and growth prospects that were materially misleading. Specifically, the company promoted its initiative to expand into additional product categories — often referred to as “adjacencies” — including products for men, lips, hair, and laundry. According to the lawsuit, these strategies did not deliver the promised growth in net sales or customer base expansion.

Bath & Body Works reported disappointing financial results in both its second quarter and third quarter of 2025. On August 28, 2025, the company announced weaker-than-expected second quarter earnings and reduced its full-year guidance, causing the stock to drop. Later, on November 20, 2025, the third quarter results revealed continued underperformance and unmet strategic expectations. These announcements led the stock price to fall sharply — including a drop of approximately 24.8% in a single trading session on November 20, 2025.

Financial Reporting Concerns

According to the allegations in the class action, Bath & Body Works’ disclosures to the public portrayed a stronger business outlook than warranted, leaving investors without key information needed to make fully informed decisions. Plaintiffs argue that this lack of transparency contributed to the steep decline in stock value when the truth about the company’s performance became evident.

Legal Options for Investors

If you invested in Bath & Body Works and incurred losses when the company’s stock price fell, you may have legal rights to seek compensation through this class action lawsuit. Legal counsel firms handling the case are urging investors to submit their information to determine eligibility to participate in the lawsuit or to be considered for appointment as a lead plaintiff.

Lead Plaintiff Deadline

Investors must act quickly. The deadline to ask the court to appoint you as Lead Plaintiff in this case is March 16, 2026. This deadline is crucial if you want to take an active role in the litigation and influence how the case is managed.

No Fees for Eligible Participants

Representation in the class action is on a contingency fee basis, meaning participants are not responsible for upfront legal costs. Legal fees and expenses will only be considered for approval by the court if the case results in a settlement or judgment. Shareholders are generally not responsible for court costs or litigation expenses.

How to Participate

To participate or learn more about your rights as an investor in this case, you can:

• Visit the law firm’s case information page provided by Bleichmar Fonti & Auld LLP.
• Submit your details through the online form or contact an attorney directly.
• Consult with your own legal counsel to discuss your options.

Contact information for submitting your claim typically includes an email address and phone number provided by the firm handling the lawsuit.

Background: Bath & Body Works and Market Impact

Bath & Body Works is a leading retailer with over 1,700 stores across the United States and Canada, known for its scented candles, body lotions, soaps, and personal care products. Despite its strong market presence, the company’s stock recently experienced volatility driven by weaker financial performance and investor concerns over strategic direction.

Analysts have observed that BBWI stock sentiment has been mixed, with periods of positive institutional investment offset by increased short interest and market caution following earnings announcements. As a result, legal scrutiny has increased alongside investor efforts to recoup losses.

Other Related Investor Actions

In addition to the securities class action highlighted here, other law firms have also issued separate notices reminding investors about potential legal claims related to the company’s stock performance. Various shareholder rights and securities fraud lawsuits have been reported in recent weeks, emphasizing the broader legal attention on the matter.

Multiple Legal Avenues

Several law firms have provided investor alerts and deadlines for lead plaintiff motions across related claims, reinforcing the importance of acting before the applicable court-set deadlines to protect legal rights and potential recovery opportunities.

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