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You must submit the settlement Proof form attached below, in order to participate in this settlement. There is a strict deadline of December 19, 2020 by which all claims must be submitted. The instructions for submitting are included in the Proof and the Notice files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, INC.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
Settlement Overview
You must register to view and download the Settlement Notice and Settlement Proof.
August 31, 2020 - The court preliminarily approved the settlement.
August 21, 2020 - A stipulation and agreement of settlement was entered by the parties.
November 18, 2019 - The court denied the defendants' motion to dismiss.
July 26, 2019 - A motion to dismiss the amended consolidated complaint was filed.
July 8, 2019 - An amended consolidated complaint was filed.
February 14, 2019 - An investor in shares of Avon Products, Inc. (NYSE: AVP) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Avon Products, Inc. in connection with certain allegedly false and misleading statements made between August 2, 2016 and August 2, 2017.
On November 3, 2016 Avon Products, Inc. filed its Form 10-Q for the quarterly period ended September 30, 2016 and disclosed that its operating expenses and margins had been negatively impacted by higher bad debt expense.
On February 16, 2017, Avon Products, Inc. announced its fourth quarter 2016 results and held a conference call to discuss the results. Avon Products, Inc. reported a net loss of $0.03 per share and a 2% decline in active representatives. Avon Products, Inc. also disclosed a $35 million bad debt charge attributable to the previously undisclosed changes to credit terms to recruit new representatives in Brazil.
On May 4, 2017, Avon Products, Inc. announced its first quarter 2017 results and held a conference call to discuss the results. The Company reported a net loss of $0.10 per share and a 3% decline in active representatives. On the call, Avon Products, Inc. disclosed that despite its earlier assurances that the Brazil bad debt problem had been fully accounted for in 2016, the Company was recording another significant charge for bad debt tied to Avon’s decision to loosen its credit terms to recruit new representatives in Brazil.
Then, on August 3, 2017, Avon Products, Inc. announced its second quarter 2017 financial results and held a conference call to discuss the results. The Company reported a net loss of $0.12 per share and a 3% decline in active representatives. The Company also reported that Brazil revenue was “down 2% in constant dollars, primarily driven by a decrease in Active Representatives.” On the call, Avon’s CFO acknowledged that, despite Avon’s earlier representations, the remedial actions in Brazil (i.e., stricter credit terms applied to recruiting new representatives) were negatively impacting active representatives and revenue in Brazil.
According to the complaint the plaintiff alleges on behalf of purchasers of Avon Products, Inc. (NYSE: AVP ) common shares between August 2, 2016 and August 2, 2017, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that in order to inflate its reported revenue and representative growth metric, Avon engaged in an undisclosed scheme whereby it significantly loosened its credit terms in order to recruit new representatives in Brazil, its largest market, that Avon did not disclose the changes to its credit terms in Brazil, that Avon also failed to increase its allowance for doubtful accounts to account for the changes to its credit terms in Brazil, and that as a result of the concealment of defendants’ scheme between August 2, 2016 and August 2, 2017, the price of Avon stock was artificially inflated to as high as $6.89 per share.