1,000,000 + Attorneys and Legal Staff - Legal employers hire more people on LawCrossing than any other site.
Dykema Grabs Product Liability Superstar
Dykema Grabs Product Liability Superstar
Graduates of Iowa Law Schools May Not Have to Take Bar Exam
Graduates of Iowa Law Schools May Not Have to Take Bar Exam
Federal Judge Rejects Multi-Million Dollar Settlement Between Hewlett-Packard and Shareholders
Federal Judge Rejects Multi-Million Dollar Settlement Between Hewlett-...
Man Speared Through Throat By McDonald’s Orange Juice Sues
Man Speared Through Throat By McDonald’s Orange Juice Sues
Job Listings

Federal Investigators Probe Herbalife

The U.S. Federal Trade Commission is investigating Herbalife Ltd., according to a report by Bloomberg News, to answer the question at the heart of Bill Ackman’s $1 billion bet against the company: Do people buy its products for their own use?

As of March 2014, Herbalife has been under investigation by the U.S. Federal Trade Commission. Herbalife International is a multi-level marketing company that sells nutrition, weight management and skin-care products. The company has been criticized by, among others, hedge fund manager Bill Ackman of Pershing Square Capital, who claimed that Herbalife operates a “sophisticated pyramid scheme.”

Herbalife products are not sold in traditional stores, and the company’s distributors instead sell directly to family, friends, neighbors and strangers. They buy products at a discount and sell them at a markup.

What

 job title, keywords

Where

 city, state, zip



Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!


According to Bloomberg News, while Herbalife has said it is cooperating with the FTC probe and welcomes the opportunity to clear up “misinformation in the market,” the Cayman Islands-based company has reported that it has no knowledge of an FBI investigation. Illinois Attorney General Lisa Madigan is examining consumer complaints against the company.

According to ABC News,  a Staten Island, N.Y., Herbalife distributor told a potential customer who was actually an ABC News reporter wearing a hidden camera — that a woman with a brain tumor became symptom free after starting on Herbalife products. “She used to shake like this because she lost control of her motor skills to the tumor and she said part of her cerebellum was deteriorated,” he said. “If you see her now, she’s like one of us here…Whatever it is that the product did, it helped her a lot.”

A former FTC lawyer now at Hudson Cook LLP in Washington, Joel Winston, said in an interview that “It’s going to be a long, drawn-out investigation. ”According to Bloomberg News Winston said that, “They have to get all of these records, and what they often run into in these cases is the company doesn’t have records of retail sales.”

Image credit: www.livetradingnews.com

Federal Investigators Probe Herbalife by

Tagged: ,

Jaan Posted by on May 6, 2014. Filed under Business News,Home. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

 

 

Job of the Day
Real Estate Associate
USA-TX-Dallas

Our client is a north Dallas law firm who seeks a Real Estate Development Associate.  The ideal candidate will have 2-4 years law firm experience concentrated in representing real estate develope...