Avon Products, Inc. NYSE: AVP

A class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Avon Products, Inc. ("Avon") (NYSE:AVP) common stock during the period between April 8, 2005 and July 18, 2005 (the "Class Period").

The complaint charges Avon and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Avon engages in the manufacture and marketing of beauty and related products primarily in North America, Latin America, Europe, and Asia Pacific.

The complaint alleges that, throughout the Class Period, defendants issued numerous positive statements about the Company's performance and future prospects. As alleged in the Complaint, these statements were materially false and misleading because defendants failed to disclose and/or misrepresented the following adverse facts, which were known, or recklessly disregarded by them, at all relevant times: (i) that the Company was experiencing increasing resistance to its expansion efforts in China because local businesses were dissatisfied with the Company's plans to direct sell in that market; (ii) that the Company's revenue growth in its Central and Eastern Europe markets was dramatically slowing from internally forecasted levels such that the Company would be unable to reach its stated earnings projections; (iii) that the Company's expansion efforts in Russian were being delayed due to a variety of adverse factors; and (iv) that as a result of the foregoing, defendants lacked a reasonable basis for their earnings projections and positive statements about the Company.

On July 19, 2005, before the start of trading, Avon issued a press release announcing that its earnings for the second quarter of 2005 would be below expectations because of two factors: (i) "an unexpected temporary decline in China as Beauty Boutique owners reacted with concern to the imminent resumption of direct selling in that country;" and (ii) "lower-than- anticipated revenue growth in Central and Eastern Europe resulting from underperformance of several key marketing offers as well as delayed expansion into new geographies within Russia."

Upon this news, shares of Avon common stock closed at $31.30 per share, a decline of $5.30 per share, or over 14%, from the previous trading day's close, on unusually heavy trading volume.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

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If you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible class action lawsuit. Please fill in our form on the right to submit your complaint and we will have a lawyer review your securities complaint.

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