Avon Products Inc. shares dropped Tuesday as the beauty company confirmed administrative leaves of absence for four employees pending the outcome of an internal ethics investigation regarding its business in China.
Avon’s shares fell nearly 8% to $32 in midday trading.
The New York-based company (AVP 31.91, -2.85, -8.20%) launched in June 2008 a voluntary internal investigation of its China operations, focusing on compliance with the Foreign Corrupt Practices Act. Enacted in 1977, the federal law proscribes the payment of bribes to foreign officials.
Full story: Avon shares drop amid internal ethics probe