Skip to comments.Herbalife under FBI investigation; shares tumble
Posted on 04/12/2014 4:51:28 PM PDT by Olog-hai
Shares of Herbalife Ltd. suffered their biggest loss in more than a year Friday following a report that criminal authorities are investigating the Los Angeles nutritional products company.
The FBI has launched a criminal investigation of Herbalife and its web of independent distributors, a federal law enforcement source told The Times.
A federal law enforcement official in New York confirmed Friday that the FBI had opened an inquiry into Herbalife but did not know first-hand the extent of the investigation. I cant give any guidance on where its headed, the official said.
(Excerpt) Read more at latimes.com ...
Guess they didn’t make a big enough payment to the DNC coffers.
Amway fought and won this 40 some years ago.
The wookie apparently farted too much after using something natural from Herbalife
Is it really a “criminal investigation” when there are no accusations of wrongdoing? Wouldn’t that be harassment instead?
I recently read something about this. The government is attacking Herbalife in order to manipulate the value of the company so that some big shot statist can make a boatload of money shortselling it. I’ll see if I can find it somewhere.
The entire report is boojit ... there’s no criminality and no expectation of anything coming of it ... but someone felt it neccesary to publish it
I think this is the guy, but I am not sure. Instead of having read something, perhaps it was a TV news segment.
Pretty much true of every MLM company.
If they aren’t accused, what is the basis for the investigation? Revenge?
Isn’t the owner conservative?
some milloniare shorted the stock and is bashing big time.
Well, it’s a successful business without any Federal or State subsidies. I’d be surprised if he (or she) wasn’t. . .
Ackman is working both sides of the street, short selling the stock and at the same time pushing the investigation with the Feds to make his short position viable.
Unethical at best and at worst criminal. But that’s just my opinion.
See post #13.
If he doesn’t succeed in driving the price down, he’s lost $700MM of other people’s money.
He made a bet against them. But, any ‘profit’ he will make on the short he will donate to charity. Mr. Ackman just hates the idea of a non .gov pyramid scheme.
The article I linked in #13 says that the $700MM short sale came out of the hedge fund he manages and that the fund is taking the hit while the price stays high.
'Any money he makes on this bet will go to charity, with $25 million slated for Sohn regardless of how it turns out.
'Why not make a ton of money and use just some of it for a good cause, as Ackman normally does? Because profiting from Herbalifes alleged exploitation of its distributors feels like blood money, Ackman said. His goal: to let the Federal Trade Commission take this research and shut the company down. '
Were they selling stevia?
Herbalifes big, big mistake was advertising on Rush and (I think) Hannity.
This is targeted payback, and a message to other companies.
It’s none of the other stuff people are speculating on.
Amway bump.....but Herbalife might be set up differently. I don’t know.