Avon Products Inc is seeking approval of a $62 million settlement of a U.S. lawsuit accusing the cosmetics company of defrauding shareholders by concealing its failure to stop workers from bribing officials in China to win business.
The proposed settlement was filed on Tuesday with the U.S. District Court in Manhattan and requires a judge’s approval.
It resolves claims that Avon, former Chief Executive Andrea Jung and former Chief Financial Strategy Officer Charles Cramb, intended to mislead shareholders from 2006 to 2011 about the company’s ability to comply with the federal Foreign Corrupt Practices Act, which prohibits bribing foreign officials.
Shareholders led by two German investment funds said Avon embraced a corporate culture that was “actively hostile” to effective oversight and concealed its dependence on corrupt activity such as “dinner and karaoke” events to boost