NEW YORK — Another shareholder lawsuit seeking class-action status has been filed against Avon Products Inc., the second claim in as many weeks.
The suit alleges that Avon concealed problems it faced in its businesses overseas, Schiffrin & Barroway LLP, attorney for the shareholders, stated Friday.
According to the statement, Avon allegedly deceived investors when it issued positive statements about its performance earlier this year. The lawsuit alleges that the company knew there was resistance to its efforts to expand in China and Russia and that revenue growth in central and Eastern Europe had slowed down when it issued the statements.
The lawsuit was filed Friday in Manhattan federal court on behalf of investors who purchased Avon common stock between Feb. 1 and July 18.
Three Avon executives were named in the suit: Andrea Jung, chairman and chief executive officer; Susan J. Kropf, president and chief operating officer, and Robert J. Corti, executive vice president and chief financial officer.
A shareholder lawsuit filed on July 29 had a purported class period of April 8 to July 18, stated Lerach Coughlin LLP, attorney for the shareholders, and named only Jung and Corti as defendants.
This story first appeared in the August 9, 2005 issue of WWD. Subscribe Today.