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NYSE:AVP Shareholder Notice: Lawsuit Alleges Misleading Statements by Avon Products, Inc.

Via: ReleaseWire

Updated 11:00 AM CST, Thu, February 28,2019

A lawsuit was filed on behalf of investors in Avon Products, Inc. (NYSE: AVP) shares over alleged securities laws violations.

San Diego, CA -- (SBWIRE) -- 02/28/2019 -- An investor, who purchased shares of Avon Products, Inc. (NYSE: AVP), filed a lawsuit over alleged violations of Federal Securities Laws by Avon Products, Inc.

Investors who purchased shares of Avon Products, Inc. (NYSE: AVP) should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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.

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. 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. As a result of the concealment of defendants' scheme during the Class Period, the price of Avon stock was artificially inflated to as high as $6.89 per share.

Those who purchased shares of Avon Products, Inc. (NYSE: AVP) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

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http://www.sbwire.com/press-releases/nyseavp-shareholder-notice-lawsuit-alleges-misleading-statements-by-avon-products-inc-1160010.htm

Media Relations Contact
Michael Daniels
858-779-1554
Email: Click to Email Michael Daniels
Web: http://www.ShareholdersFoundation.com