It’s been a tumultuous year for the cosmetics industry.
On Tuesday, the New York Stock Exchange announced that it had decided to end the sale of stock in brands like ELATE cosmetics, which sells face creams with a $49 price tag, to an independent distributor called Elate Cosmetics.
ELATE has a reputation for high-quality cosmetics, but its prices have come under fire in recent years, including from some critics.
And on Tuesday, a New York jury found that ELATE Cosmetics had violated the California Labor Code, which bars workers from taking money for work done during their shifts, even if the work was not paid.
“The jury found this to be true, and this is not something that ELATES policies have been followed in the past,” said attorney Robert B. Zeller, who represented the plaintiffs.
“It is clear that ELATES has a long history of not paying workers for overtime hours.”
Elate is owned by New York-based company Elite Group, which has been criticized for its pricing practices and labor practices, including wage theft.
In 2013, the company filed for bankruptcy, citing the lack of profits and debts.
On Monday, ELATE announced that its shares would trade on the Nasdaq under the ticker ELATE.
The company said it would continue to sell products online and through its own website.
“We are disappointed that the New YORK Stock Exchange has decided to terminate ELATE’s distribution and purchase rights in the ELATE brand,” the company said in a statement.
“However, our company is confident that ELACE will be able to resume operations in the United States.”
ELATE said it will continue to distribute its products to consumers in the U.S. and in Canada, and will “continue to provide support for ELATE.”
ELATE CEO Michael J. Toth has defended his company’s business practices.
“In an industry with an exploding supply of beauty products, the ELATERS approach to selling our products has proven to be the best for our brand and our shareholders,” he said in the statement.
He said the company was able to “accelerate our growth and increase sales in an environment where we are facing significant competition from the world’s leading beauty brands.”
“While we are grateful to the NYSE for the opportunity to help us move forward, we will continue with our efforts to support ELATE as we build a new product offering for consumers around the world,” he added.
On Wednesday, ELATED announced that the company would start selling ELATE products in Canada.
The move came after the Canadian government announced that ELATED had agreed to pay a $5.6 million fine for allegedly illegally using a $3.6-million loan from its bank.
“While ELATE and ELATEN have been at odds with one another, the Canadian regulatory process and the company’s continued support of the ELATING brand have led to an orderly settlement that will enable the company to return to full production and distribution,” ELATEL said in an emailed statement.