Avon Settles FCPA Follow-On Suit for $6.25 Million 

An FCPA violation is often just the first of many negative consequences following a company’s discovery of a corruption issue. Avon Products’ FCPA violations in China have already resulted in $135 million in fines, an internal investigation that cost far more than the fines, and a host of lawsuits. Adding to the laundry list of expenses, Avon recently resolved one litigation spawned by its violations by agreeing to pay $6.25 million to settle a class action suit brought by participants in its retirement plan. The plaintiffs claimed they were harmed when the value of Avon stock held by their plan dropped in 2011 after Avon disclosed the SEC’s investigation into its alleged FCPA violations. This article summarizes the key terms of the settlement. See “Anti-Corruption Compliance Lessons from the Avon Settlements” (Jan. 7, 2015).

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