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Cox Padmore Skolnik & Shakarchy LLP remains ready to serve you during the COVID-19 pandemic. We are prepared to provide you with continuous legal service and uninterrupted communication. We are also monitoring the legal impact of COVID-19 and we are available to discuss any questions you may have regarding the CARES Act, insurance coverage issues, including business Interruption insurance, or other issues. Please see below for a list of our practice areas. You may contact us by the usual means of telephone and email, which is encouraged at this time. We will promptly respond. Video conferencing is also available. In all, our firm remains committed to assisting you throughout this evolving period of legal, business, and safety concerns.

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  4.  | Avon’s legal matters involving the SEC continue

Avon’s legal matters involving the SEC continue

| Sep 10, 2013 | Securities Fraud

Avon has come a long way since its inception. While undoubtedly some of the changes it has encountered along the way are positive for the business, there are likely some that those in charge of the business would prefer go away. One of those things is the bribery probe the Securities and Exchange Commission has been conducting into the business’ operations. The SEC has invested five years and an unknown amount of money looking into the securities matter.

The SEC is trying to determine whether the beauty company violated the Foreign Corrupt Practices Act while trying to obtain licenses to do business in China. More specifically they are looking into whether Avon either gave gifts or money to Chinese officials. Over the course of the last few years other markets have been included in the probe as well.

Recently Avon sought to bring an end to the investigation. It offered the SEC a $12 million settlement. That offer was rejected most likely due to the low amount offered. According to one source, prior to the settlement offer multiple officials with the SEC and the Justice Department indicated that the business should pay at least $100 million.

The business’ new chief executive appears eager to have this investigation compete so it can move forward. This is not surprising when one considers that since 2008, the company has spent at least $340 million on the matter. In addition to an internal investigation, that money has been spent on legal bills. At this time the business is reportedly awaiting a counteroffer from the SEC.

As this case illustrates, incidents involving investigations by the SEC are usually complex and expensive. It is often in the best interest of the business to resolve the matter in a timely manner. Working with lawyers who routinely handle such cases are a part of that solution.

Source: The Wall Street Journal, “Avon Earnings: Probe Settlement Is Rejected,” Joe Palazzolo and Paul Ziobro, August 1, 2013

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