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Pending Lawsuit Could Hamper Avon’s Shares

November 14, 2005

Shares in Avon Products Inc. could be overvalued in light of slower unit sales and a lawsuit filed on behalf of its door-to-door sales representatives, according to Barron’s magazine. Avon reported 3% unit sales growth in the third quarter of 2003, compared to almost 13% a year earlier.

The lawsuit, filed on behalf of sales representatives, states that the company shipped products to a former representative in California who did not order them, and then failed to credit her when she returned the products.
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