Avon Dodges SEC Bullet
Cosmetics maker Avon Products Inc. (NYSE: AVP) filed a notice with the Securities and Exchange Commission last night:
On September 11, 2012, Avon Products, Inc. (the "Company") was advised by the staff of the Securities and Exchange Commission (the "SEC"), Division of Enforcement that the staff does not intend to recommend any enforcement action by the SEC against the Company in connection with the previously announced Regulation FD investigation.
At issue had been whether former Avon vice-chairman Chuck Cramb had shared material information with Citigroup Inc. (NYSE: C) when he disclosed a possible bribery investigation in Avon's Chinese operations. Such a disclosure would violate the SEC's Regulation FD.
Avon's own internal investigation, begun in 2008, has led to several firings and employee departures.
The SEC's decision lifted a dark cloud from the company's prospects and shares rose sharply 3.5% yesterday to close above $16 for the first time in nearly a month. Avon's shares jumped to their 52-week high last April, when longtime CEO Andrea Jung was replaced by current CEO Sheri McCoy.
Avon's shares closed yesterday at $16.28 in a 52-week range of $14.45 to $23.94.
Filed under: 24/7 Wall St. Wire, Consumer Product, Law, Regulation Tagged: AVP, C