The federal agencies in June rejected Avon's proposed $12 million settlement offer. Avon said it was contacted by SEC staff in September, when SEC's suggested terms of proposed monetary penalties that were much bigger than Avon's earlier offer. The company said if the DOJ were to propose similar terms and the company were to enter into settlement, its "earnings, cash flows, liquidity, financial condition and ongoing business would be materially adversely impacted." The disclosure was made as Avon swung to a third-quarter loss following about a 20% sales drop each in North America and Asia.
"There's no shortage of challenges for us," CEO Sheri McCoy said on a call