Avon suit
This article was originally published in The Rose Sheet
Executive Summary
Direct-seller issued misleading public statements this year, violating federal securities laws, according to two class action lawsuits filed in New York City federal court on behalf of purchasers of Avon Products, Inc. common stock between April 8, 2005 and July 18, 2005. Law firms Schatz & Nobel and Stull, Stull & Brody allege in complaints filed Aug. 2 and Aug. 3, respectively, that Avon failed to disclose several factors linked to lower-than-expected earnings projections, which were revealed in the company's Q2 call July 19 (1"The Rose Sheet" July 25, 2005, In Brief). "On this news, Avon stock closed at $31.30 per share, a decline of $5.30 per share from the previous day's close," according to the suits...
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