Avon, Investors Seek First Court OK of $14.5 Million Settlement

Avon Products Inc. and its investors asked a New York federal judge for preliminary approval of a $14.5 million settlement that would resolve allegations the company misled investors about its Brazilian operations.

Investors accused the beauty products resale company of not telling them that it had loosened credit terms for its representatives in Brazil and wasn’t training them appropriately, leading to a stock drop. The Aug. 21 preliminary settlement approval motion came after the investors fought off Avon’s bid to dismiss the U.S. District Court for the Southern District of New York suit in 2019.

The claims involved Avon operations ...