Avon Products, Inc.
Avon Products, Inc. (NYSE: AVP)
MURRAY FRANK LLP is investigating securities fraud claims against Avon Products, Inc. (“Avon” or the “Company”) (NYSE: AVP) and certain of its officers, on behalf of persons or entities who (1) were Avon shareholders as of the close of business on March 17, 2011, March 17, 2010, March 18, 2009, March 14, 2008, or March 15, 2007 and therefore eligible to vote proxies or (2) purchased or otherwise acquired shares of Avon's common stock from July 31, 2006 through May 24, 2011, inclusive (the "Class Period").
Join the Class Action
The investigation concerns violations of the Securities Exchange Act of 1934 (the “Exchange Act”) that occurred when the Company and certain of its officers issued materially false and misleading statements during the Class Period regarding Avon’s internal controls and accounting systems.
Specifically, it is alleged that during the Class Period, the Company and certain of its officers made false and misleading statements about or knew but failed to disclose that (1) the Company lacked adequate and effective internal controls; (2) as a result, from as far back as 2004 until as recently as 2010, the Company had paid millions of dollars of bribes in violation of the Foreign Corrupt Practices Act (“FCPA”) in over a dozen countries; and (3) as a result of the foregoing, during the Class Period, the Company’s stock traded at artificially inflated prices.
In October 2008, Avon issued a press release disclosing that the Company had commenced an internal investigation in relation to possible FCPA violations in China in June 2008. In July 2009, the Company announced that it had expanded its investigation to review its practices related to the FCPA and related laws in additional countries. On April 12, 2010, the Company reported the suspension of four executives it found to have been involved in payment of improper expenses for items such as travel and entertainment on behalf of Chinese government officials. Subsequently, on May 4, 2011, the Company announced that it had fired the employees who were placed on administrative leave in 2010. On this news, Avon’s stock price fell $2.20 per share, or 7%, from a close of $30.91 per share on May 3, 2011 to a close of $28.71 per share on May 5, 2011. Finally, on May 25, 2011, the Wall Street Journal reported that federal prosecutors from the Southern District of New York’s Complex Fraud Unit were investigating possible FCPA violations “in several countries” between 2004 and 2010. In response to this news, Avon’s stock price fell $0.83 per share, or nearly 3%, from a close of $29.98 per share on May 24, 2011 to a close of $29.15 per share on May 25, 2011.
If you were a shareholder of Avon securities as of the close of business on March 17, 2011, March 17, 2010, March 18, 2009, March 14, 2008, or March 15, 2007 and therefore eligible to vote proxies, or if you purchased Avon securities within the Class Period, you may move the Court, not later than September 6, 2011, to serve as Lead Plaintiff for the class. A Lead Plaintiff is a representative chosen by the Court who acts on behalf of other class members in directing the litigation. You do not need to be a Lead Plaintiff to be included in the class. If you wish to discuss this investigation, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact us.
Contact:
MURRAY FRANK LLP
Bridget Hamill
212-682-1818
800-497-8076
[email protected]
www.murrayfrank.com
MURRAY FRANK LLP is investigating securities fraud claims against Avon Products, Inc. (“Avon” or the “Company”) (NYSE: AVP) and certain of its officers, on behalf of persons or entities who (1) were Avon shareholders as of the close of business on March 17, 2011, March 17, 2010, March 18, 2009, March 14, 2008, or March 15, 2007 and therefore eligible to vote proxies or (2) purchased or otherwise acquired shares of Avon's common stock from July 31, 2006 through May 24, 2011, inclusive (the "Class Period").
Join the Class Action
The investigation concerns violations of the Securities Exchange Act of 1934 (the “Exchange Act”) that occurred when the Company and certain of its officers issued materially false and misleading statements during the Class Period regarding Avon’s internal controls and accounting systems.
Specifically, it is alleged that during the Class Period, the Company and certain of its officers made false and misleading statements about or knew but failed to disclose that (1) the Company lacked adequate and effective internal controls; (2) as a result, from as far back as 2004 until as recently as 2010, the Company had paid millions of dollars of bribes in violation of the Foreign Corrupt Practices Act (“FCPA”) in over a dozen countries; and (3) as a result of the foregoing, during the Class Period, the Company’s stock traded at artificially inflated prices.
In October 2008, Avon issued a press release disclosing that the Company had commenced an internal investigation in relation to possible FCPA violations in China in June 2008. In July 2009, the Company announced that it had expanded its investigation to review its practices related to the FCPA and related laws in additional countries. On April 12, 2010, the Company reported the suspension of four executives it found to have been involved in payment of improper expenses for items such as travel and entertainment on behalf of Chinese government officials. Subsequently, on May 4, 2011, the Company announced that it had fired the employees who were placed on administrative leave in 2010. On this news, Avon’s stock price fell $2.20 per share, or 7%, from a close of $30.91 per share on May 3, 2011 to a close of $28.71 per share on May 5, 2011. Finally, on May 25, 2011, the Wall Street Journal reported that federal prosecutors from the Southern District of New York’s Complex Fraud Unit were investigating possible FCPA violations “in several countries” between 2004 and 2010. In response to this news, Avon’s stock price fell $0.83 per share, or nearly 3%, from a close of $29.98 per share on May 24, 2011 to a close of $29.15 per share on May 25, 2011.
If you were a shareholder of Avon securities as of the close of business on March 17, 2011, March 17, 2010, March 18, 2009, March 14, 2008, or March 15, 2007 and therefore eligible to vote proxies, or if you purchased Avon securities within the Class Period, you may move the Court, not later than September 6, 2011, to serve as Lead Plaintiff for the class. A Lead Plaintiff is a representative chosen by the Court who acts on behalf of other class members in directing the litigation. You do not need to be a Lead Plaintiff to be included in the class. If you wish to discuss this investigation, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact us.
Contact:
MURRAY FRANK LLP
Bridget Hamill
212-682-1818
800-497-8076
[email protected]
www.murrayfrank.com