Avon Products won dismissal in a Manhattan court Monday of a lawsuit accusing it of intending to deceive shareholders about its ability to comply with the federal Foreign Corrupt Practices Act, Reuters reported, citing the court’s 59-page decision. US District Judge Paul Gardephe dismissed the securities fraud suit, which claimed that Avon had concealed its inability to stop workers from bribing officials in China to win business there – a practice prohibited by said act. In afternoon trading Avon shares were down 25 cents at US$12.46; they have lost roughly three-fifths of their value since the first bribery-related disclosure in October 2008.
Categories