Robbins Arroyo LLP: Avon Products, Inc. (AVP) Sued for Misleading Shareholders

Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Avon Products, Inc. (NYSE: AVP) filed a class action complaint against the company for alleged violations of the Securities and Exchange Act of 1934 between August 2, 2016 and August 2, 2017. Avon manufactures and markets beauty and related products.

View this information on the law firm's Shareholder Rights Blog:
https://www.robbinsarroyo.com/avon-products/

Avon Accused of Inflating Revenue and Growth

According to the complaint, Avon loosened its credit terms to recruit new representatives and to boost revenue in Brazil, its largest market. While telling investors that the company continued to take "a balanced risk-based approach to bring in and on board new representatives," Avon failed to mention the changes to its credit terms and failed to increase its allowance for bad debts. The company began to report dismal financials only three months later on November 3, 2016, revealing that operating expenses had increased due to bad debt expense. Things continued to go south until August 3, 2017, when Avon announced that revenue was down 2% in constant dollars and that the company did not expect to see improvements in Brazil's performance that quarter. Since Avon's troubles began to be made public, Avon's stock plummeted, closing at only $2.87 per share on August 4, 2017, and it continues to trade significantly below the stock's class period high.

Avon Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.

Attorney Advertising. Past results do not guarantee a similar outcome.

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