NEW YORK, April 07, 2019 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Avon Products, Inc. (“Avon” or the “Company”) (NYSE: AVP). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 9980.
The investigation concerns whether Avon and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On November 3, 2016, Avon 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. Over the next two days, Avon’s stock price fell $0.47 per share, or 7.33%, to close at $5.94 per share on November 4, 2016.
On February 16, 2017, Avon issued a press release announcing its fourth quarter 2016 results and held a conference call to discuss the results. Avon reported a net loss of $0.03 per share and a 2% decline in active representatives. The Company also disclosed a $35 million bad debt charge attributable to the previously undisclosed changes to credit terms to recruit new representatives in Brazil. Following this news, Avon’s stock price fell $1.09 per share, or 18.6%, to close at $4.77 per share on February 17, 2017.
On May 4, 2017, Avon issued a press release announcing 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 disclosed that despite its earlier assurances that its 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. Following this news, Avon’s stock price fell $1.03 per share, or 22.15%, to close at $3.62 per share on May 4, 2017.
Then, on August 3, 2017, Avon issued a press release announcing 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. Avon also reported that Brazil revenue was “down 2% in constant dollars, primarily driven by a decrease in Active Representatives.” On the call, Avon’s Chief Financial Officer 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. Following this news, Avon’s stock price fell $0.36 per share, or 10.71%, to close at $3.00 per share on August 3, 2017.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby