SOURCE: Stull, Stull & Brody

August 02, 2005 17:52 ET

Stull, Stull & Brody Announces Class Action Against Avon Products, Inc.

NEW YORK, NY -- (MARKET WIRE) -- August 2, 2005 -- Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York, on behalf of purchasers of Avon Products, Inc. ("Avon") (NYSE: AVP) common stock between April 8, 2005 and July 18, 2005, inclusive (the "Class Period").

Stull, Stull & Brody has substantial experience representing employees who suffered losses from purchases of their employer's stock in their 401(k) plans. If you bought Avon stock through your Avon retirement account and have information or would like to learn more about these claims, please contact us.

The Complaint alleges that Avon violated federal securities laws by issuing misleading public statements. Specifically, defendants failed to disclose the following: (i) that Avon was experiencing increasing resistance to its expansion efforts in China; (ii) that Avon's revenue growth in its Central and Eastern Europe markets was dramatically slowing from internally forecasted levels such that Avon would not reach its earnings projections; (iii) that Avon's expansion efforts in Russia were being delayed due to a variety of adverse factors. On July 19, 2005, Avon announced that its earnings for the second quarter of 2005 would be below expectations because of two factors: (i) "an unexpected temporary decline in China as Beauty Boutique owners reacted with concern to the imminent resumption of direct selling in that country"; and (ii) "lower-than-anticipated revenue growth in Central and Eastern Europe resulting from underperformance of several key marketing offers as well as delayed expansion into new geographies within Russia." On this news, Avon stock closed at $31.30 per share, a decline of $5.30 per share from the previous day's close.

If you acquired Avon common stock between April 8, 2005 and July 18, 2005, you may, no later than September 27, 2005, request the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in both New York and Los Angeles.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.

Contact Information

  • Contact:
    Tzivia Brody, Esq.
    Stull, Stull & Brody
    1-800-337-4983
    Email Contact
    fax 212/490-2022

    6 East 45th Street
    New York, NY 10017
    www.ssbny.com