NEW YORK — A Manhattan federal court on Monday ruled that the shareholder class action lawsuit, filed against Revlon and some of its executives in October 1999, can proceed to trial.
As reported, the suit charged that the firm and certain executives “concocted” a scheme to defraud the public about the cosmetics giant’s financial health through improper revenue recognition procedures.
The court wrote, in its opinion, that the lawsuit alleged sufficient facts giving rise to a “strong inference” of fraudulent intent. The alleged misleading statements, referred to in the lawsuit, came from press releases discussing financial performance.
The claims against Revlon officials for misrepresentation were also allowed to continue. The court deemed that allegations, referring to statements firm representatives made at an analysts’ conference on May 15, 1998, were sufficient to state a claim against the officials.
A Revlon spokeswoman said, “The allegations in the complaint are completely false and without merit.