NEW YORK (TheStreet) -- Avon Products (AVP - Get Report) said it would implement a major corporate governance and compliance reform program, and pay $4 million in legal fees to resolve several lawsuits related to its foreign corruption issues, the Wall Street Journal reported.
The New York-based beauty products company and four plaintiffs in three pending actions announced the settlement on Wednesday before a final approval slated for June.
The settlement is a pledge that Avon will follow best compliance practices and can be viewed as a victory by shareholders seeking accountability from the business, the Journal noted.
Part of the pending agreement includes a detailed explanation of the company's responsibilities for Foreign Corrupt Practices Act (FCPA) compliance, implementing a global anti-corruption policy and code of conduct and a specific FCPA testing function.
Shares of Avon closed at $4.99 on Thursday.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
This is driven by multiple weaknesses, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.
The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: AVP