You or someone in your family may have purchased or acquired the publicly traded common stock of Avon during the period from January 21, 2016 to November 1, 2017, inclusive.
The Court ordered that a notice be sent to you because you have a right to know about a proposed Settlement of a class action lawsuit, and about all of your options, before the Court decides whether to approve the Settlement. If the Court approves the Settlement and after any objections and/or appeals are resolved, the Claims Administrator appointed by the Court will make the payments that the Settlement allows. Receipt of a Notice does not mean that you are a member of the Settlement Class or that you will be entitled to receive a payment. If you wish to be eligible for a payment, you are required to submit the Proof of Claim Form that is being distributed with the Notice.
The package explains the lawsuit, the Settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them.
The Court in charge of the case is the United States District Court for the Southern District of New York, and the case is known as In re Avon Products, Inc. Securities Litigation, 19-cv-01420-MKV (S.D.N.Y.). The people who sued are called Plaintiffs, and the companies and the individuals they sued, Avon Products, Inc., as well as Sherilyn S. McCoy, James S. Scully, James S. Wilson and David Legher are called Defendants. Defendants have agreed to settle the claims made in this case.
A copy of the Notice can be found here.Back To Top
Plaintiffs filed this lawsuit asserting securities fraud claims against Defendants based, inter alia, on allegations that Avon and certain of its former officers and directors violated the Securities Exchange Act of 1934 (the “Exchange Act”) and SEC Rule 10b-5 promulgated thereunder. The Defendants filed a motion to dismiss the Action, which the Court denied on November 18, 2019.
Defendants deny each and all of the claims and contentions of wrongdoing alleged by Plaintiffs in the litigation and maintain that they have at all times acted in good faith and in compliance with the law. They contend that they did not make any materially false or misleading statements, that they disclosed all material information required to be disclosed, and that any alleged misstatements or omissions were not made with the requisite intent or knowledge of wrongdoing. Defendants also contend that any losses suffered by members of the Settlement Class were not caused by any false or misleading statements or any other act or omission by Defendants and/or were caused by other events. Defendants have agreed to settle this action, without admitting any wrongdoing, solely to avoid the expense, distraction, and uncertainty of further litigation.Back To Top
In a class action, one or more people or entities called class representatives (in this case, Lead Plaintiff Holly Ngo and additionally named Plaintiff David Klungle (‘Plaintiffs”)) sue on behalf of a group of people who have similar claims, otherwise known as members of the class or class members. One court resolves the issues for all the class members, except for those who exclude themselves from the class. Judge Mary Kay Vyskocil is in charge of this proposed class action.Back To Top
The Court did not decide in favor of the Plaintiffs or Defendants. Instead, both sides have agreed to a settlement. As a result, the Parties will avoid the cost of further litigation, and eligible Class Members who make valid Claims will get compensation. Plaintiffs and their attorneys (referred to here as Lead Counsel) think the Settlement is the best resolution of this lawsuit for all Class Members.Back To Top
To see if you will get money from this settlement, you first have to determine if you are a Class Member.
The Settlement Class includes all persons and entities who purchased or otherwise acquired the publicly traded common stock of Avon during the period from January 21, 2016 to November 1, 2017, inclusive (“Class Period”).Back To Top
You are not a Class Member if you are:
If you are still not sure whether you are included, you can ask for free help. You can contact the Claims Administrator toll-free at 855-907-2140 or you can fill out and return the Proof of Claim Form enclosed with the Notice package to see if you qualify.Back To Top
Defendants have agreed to pay or cause their insurers to pay a total of $14,500,000 in cash as part of the Settlement.
The Settlement Fund will be divided among all eligible Class Members who send in valid Proof of Claim Forms, after payment of Court-approved attorneys’ fees and expenses and the costs of claims administration, including the costs of printing and mailing the Notice and the cost of publishing notice (the “Net Settlement Fund”).Back To Top
The amount of the distribution represents your pro rata share of the Net Settlement Fund in the Avon Products Inc. Securities Litigation and was calculated by the Claims Administrator, in accordance with the Court-approved Plan of Allocation for the Net Settlement Fund. Each Claimant is being paid a pro rata share of the available funds, which the Claims Administrator calculated pursuant to the terms of the Plan of Allocation, by dividing each Authorized Claimant’s Recognized Loss Amount by the total Recognized Loss Amounts of all Authorized Claimants, and then multiplying the result by the amount of the available funds. Please note your Recognized Loss Amount is NOT the same as your market loss.
The amount of the Net Settlement Fund available for this distribution under the Plan of Allocation was approximately $9.6 million. The total Recognized Loss Amounts under the Plan of Allocation for all Authorized Claimants eligible to participate in the distribution of the Net Settlement Fund was approximately $199.4 million. The pro rata share for the Initial Distribution is approximately 4%; each Authorized Claimant will receive this percentage of his, her or its Recognized Loss Amount.Back To Top
To be eligible for a payment, you must have submitted a timely and valid Proof of Claim. Proofs of Claim must have been postmarked on or before December 19, 2020.Back To Top
Payments were issued to Authorized Claimants on January 27, 2022. If you have questions about your payment, please contact the Claims Administrator at 1-855-907-2140 or info@AvonSecuritiesLitigation.com.Back To Top
Unless you exclude yourself, you are staying in the Settlement Class, and that means that you cannot sue, continue to sue, or be part of any other lawsuit against the Defendants or the other Released Defendant Parties about the same legal issues in this case. It also means that all of the Court’s Orders in this Action will apply to you and legally bind you, and you will be releasing your claims in this case against the Defendants and other Released Defendant Parties. The terms of the release are described in the Notice.Back To Top
The deadline to submit requests for Exclusion was December 30, 2020.Back To Top
No. Unless you excluded yourself, you gave up any right to sue the Defendants or other Released Defendant Parties for the claims resolved by this class action settlement. If you have a pending lawsuit against any of the Defendants, speak to your lawyer in that case immediately. Remember the exclusion deadline was December 30, 2020.Back To Top
No. If you excluded yourself, you are not eligible to participate in the Settlement and should not send in a Proof of Claim Form. However, you may sue, continue to sue, or be part of a lawsuit alleging different claims against any of the Defendants. Please note: if you bring your own claims, Defendants will have the right to seek their dismissal. Also, Defendants may terminate the Settlement if Class Members who purchased in excess of a certain number of shares of Avon common stock seek exclusion from the Settlement Class.Back To Top
The Court appointed the law firm of Levi & Korsinsky, LLP to represent you and other Class Members.
These lawyers are called Lead Counsel. You will not be charged for the services of these lawyers or any of Plaintiffs’ Counsel in this case. If you want to be represented by your own lawyer, you may hire one at your own expense.Back To Top
Lead Counsel asked the Court, on behalf of Plaintiffs’ Counsel, for attorneys’ fees of up to 30% of the Settlement Fund. Lead Counsel was assisted in this case by Labaton Sucharow LLP, and The Schall Law Firm (collectively with Lead Counsel, “Plaintiffs’ Counsel”), which provided additional legal assistance to the Plaintiffs. Lead Counsel has agreed to share the awarded attorneys’ fees with Plaintiffs’ Counsel, and payment to them will in no way increase the fees that are deducted from the Settlement Fund. Lead Counsel also sought payment of litigation expenses incurred by Plaintiffs’ Counsel in the prosecution and settlement of the Action of no more than $210,000, plus accrued interest. As explained above, any attorneys’ fees and expenses awarded by the Court will be paid from the Settlement Fund. Settlement Class Members are not personally liable for any such fees or expenses.
The attorneys’ fees and expenses requested will be the only payment to Plaintiffs’ Counsel for their efforts in achieving this Settlement and for the risk in undertaking this representation on a wholly contingent basis. To date, Plaintiffs’ Counsel have not been paid for their services for conducting this litigation on behalf of the Plaintiffs and Settlement Class nor for their substantial litigation expenses. The fees requested will compensate Plaintiffs’ Counsel for their work in achieving the Settlement and are within the range of fees awarded to class counsel under similar circumstances in other cases of this type.
Lead Counsel also requested that the Court award Lead Plaintiff Holly Ngo an award of no more than $10,000 and additionally named Plaintiff David Klungle an award of no more than $10,000 as reimbursement for their time and expenses in connection with their representation of the proposed class in the Action in accordance with the PSLRA.
On February 3rd, 2021, the Court awarded Lead Counsel, on behalf of all Plaintiffs’ Counsel, attorneys’ fees in the amount of $4,350,000 (i.e., 30% of the Settlement Fund) and $157,000 in payment of litigation expenses. Lead Counsel will allocate the attorneys’ fees awarded amongst Plaintiffs’ Counsel.
The Court also awarded Lead Plaintiff Holly Ngo and additional named plaintiff David Klungle $7,500 and $1,220 respectively.Back To Top
The deadline to submit an objection was December 30, 2020.Back To Top
Objecting is simply telling the Court that you do not like something about the Settlement or Lead Counsel’s request for attorneys’ fees and expenses. You can object only if you stay in the Settlement Class. Excluding yourself is telling the Court that you do not want to be part of the Settlement Class. If you exclude yourself, you have no basis to object because the case no longer affects you.Back To Top
The Court held a fairness hearing at 11:30 a.m., on February 3, 2021. The court approved the Settlement, the Plan of Allocation, Lead Counsel’s motion for an award of attorneys’ fees and reimbursement of Litigation Expenses. You may view a copy of the court’s orders Settlement on the Important Documents page of this website.Back To Top
The fairness hearing was held on February 3, 2021. You did not have to come to the hearing. Lead Counsel answered any questions the Court may have on behalf of Class Members.Back To Top
The fairness hearing was held on February 3, 2021.Back To Top
If you do nothing, you will get no money from this Settlement. But, unless you exclude yourself, you will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against the Defendants or other Released Parties about the same legal issues in this case.Back To Top
The CUSIP for the Class Period is 054303102. The ticker symbol from January 21, 2016 through November 1, 2017 was AVP.Back To Top
This website summarizes the proposed Settlement. More details are in the Stipulation dated as of August 21, 2020. You can get a copy of the Stipulation or more information about the Settlement on the Important Documents page of this website.
You can also contact the Claims Administrator:
Avon Products, Inc. Securities Litigation
P.O. Box 5566
Portland, OR 97228-5566
Or Lead Counsel:
Gregory Mark Nespole, Esq.
Levi & Korsinsky, LLP
55 Broadway, 10th Floor
New York, NY 10006
You can also obtain a copy from the Clerk’s Office during regular business hours:
Clerk of Court
500 Pearl Street
New York, New York 10007
DO NOT TELEPHONE THE COURT OR DEFENDANTS’ COUNSEL REGARDING THIS NOTICE.Back To Top