Avon’s Pricey Looking Glass

In the New York Times‘ DealBook, Peter Henning had a terrific post about the cost of Avon Products’ internal FCPA investigation.

The company’s legal fees and costs for outside counsel conducting the investigation were $59 million in 2009, $95 million in 2010, and $22.5 for the first quarter of this year, said Henning, a Wayne State University Law School prof who writes the DealBook’s White Collar Watch.

“The final tally for the internal investigation could easily reach $250 million,” according to Henning, “a significant expenditure for any company to bear.”

After the investigtion, Henning said, Avon is likely to end up paying millions more to settle FCPA claims by the DOJ and SEC.

Henning’s conclusion: “While crime does not pay, it sure can be lucrative for law firms.”