MILWAUKEE, Sept. 10, 2005 (PRIMEZONE) -- Ademi & O'Reilly, LLP (http://www.ademilaw.com/cases/Avon.php) filed a class action lawsuit on July 29, 2005, 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 during the period between April 8, 2005, and July 18, 2005 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later September 27, 2005. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Guri Ademi at 866-264-3995 or via e-mail at gademi@ademilaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.ademilaw.com/cases/Avon.pdf. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint alleges that, throughout the Class Period, defendants issued numerous positive statements about the Company's performance and future prospects. As alleged in the Complaint, these statements were materially false and misleading because defendants failed to disclose and/or misrepresented the following adverse facts, which were known, or recklessly disregarded by them, at all relevant times: (i) that the Company was experiencing increasing resistance to its expansion efforts in China because local businesses were dissatisfied with the Company's plans to direct sell in that market; (ii) that the Company's revenue growth in its Central and Eastern Europe markets was dramatically slowing from internally forecasted levels such that the Company would be unable to reach its stated earnings projections; (iii) that the Company's expansion efforts in Russian were being delayed due to a variety of adverse factors; and (iv) that as a result of the foregoing, defendants lacked a reasonable basis for their earnings projections and positive statements about the Company.
On July 19, 2005, before the start of trading, Avon issued a press release announcing 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."
Upon this news, shares of Avon common stock closed at $31.30 per share, a decline of $5.30 per share, or over 14%, from the previous trading day's close, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of Avon common stock during the Class Period (the "Class"). The plaintiff is represented by Ademi & O'Reilly, LLP, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.