On or around 08/31/2020 (Settlement preliminarily approval)
Filing Date: February 14, 2019
According to the Complaint, Avon is a global manufacturer and marketer of beauty and related products. Avon’s reportable segments are based on geographic operations in four regions: Europe, Middle East & Africa; South Latin America; North Latin America; and Asia Pacific. During 2016, Avon had sales operations in 57 countries and territories. Brazil is Avon’s largest market, measured by revenue and number of sales representatives. In 2016, Brazil revenue was $1.2 billion, approximately 21% of Avon’s total revenues. No other country accounts for more than 10% of Avon’s total revenues.
The Complaint alleges that in order to inflate its reported revenue and representative growth metric during the Class Period, Avon engaged in an undisclosed scheme whereby it significantly loosened its credit terms in order to recruit new representatives in Brazil, its largest market. Avon did not disclose the changes to its credit terms in Brazil. Avon also failed to increase its allowance for doubtful accounts to account for the changes to its credit terms in Brazil.
On June 3, 2019, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended consolidated Complaint on July 8. On July 24, Lead Plaintiff corrected the amended consolidated Complaint. Defendants filed a Motion to Dismiss the amended consolidated Complaint on July 26. On November 18, the Court issued an Order denying Defendants' Motion to Dismiss.
The parties informed the Court on July 3, 2020 that they had reached a Settlement following mediation. On August 21, the parties entered into a Stipulation and Agreement of Settlement. The Court granted preliminary approval of the Settlement on August 31.
Company & Securities Information
Defendant: Avon Products, Inc.
Sector: Consumer Non-Cyclical
Industry: Personal & Household Products
Headquarters: United States
Ticker Symbol: AVP
Company Market: New York SE
Market Status: Public (Listed)
About the Company & Securities Data
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In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
First Identified Complaint
Manzoor Bevinal, et al. v. Avon Products, Inc., et al.