Herbalife Ltd. (HLF) Responds To Illinois AG Probe

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Herbalife Ltd. (HLF) Responds To Illinois AG Probe

It didn’t take long for Herbalife Ltd. (NYSE:HLF) to respond to the report about the latest investigation of its business practices. Today we learned that Illinois Attorney General Lisa Madigan’s office has begun its own investigation of the controversial multi-level marketing company. Her office is just the latest to launch a probe into the big question: Is Herbalife a pyramid scheme, as Bill Ackman and others claim it is?

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Herbalife remains confident in Illinois business

After the report of the Illinois investigation, Herbalife Ltd. (NYSE:HLF) issued the following statement on its website:

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“We have more than 15,000 members and many more thousands of satisfied customers in Illinois.  We will continue to provide the outstanding products and services that they have come to expect from Herbalife over the past three decades. We will always support the good work of our members.

“We are confident in the integrity of our longstanding business and the Company’s compliance with applicable laws and regulations. We look forward to working with the Illinois Attorney General’s office to resolve the consumer complaints it has received.”

Herbalife investors take it all in stride

At this point, Herbalife Ltd. (NYSE:HLF) investors pretty much take everything in stride. The number of agencies which are investigating the nutritional supplements company is growing quite rapidly, and there’s always the chance that even more state attorneys general will follow suit. The Federal Communications Commission and the FBI are also investigating claims that Herbalife is a pyramid scheme which preys on low income minorities.

Herbalife Ltd. (NYSE:HLF) continues to deny these claims and states with each investigation that it will work with investigators to take care of the complaints agencies have received. Bulls seem intent on believing that the company will be proven innocent of the allegations, while bears continue to side with Bill Ackman in his short of it.

When he first announced his position in Herbalife Ltd. (NYSE:HLF), the activist investor said its shares would fall all the way to zero after officials exposed it. Until recently, it appeared as if Ackman was fighting a losing battle, but now, things could be starting to shift his way—unless, of course, investigators from all of these agencies side with Herbalife.

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Michelle Jones is editor-in-chief for ValueWalk.com and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at Mjones@valuewalk.com.
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11 COMMENTS

  1. Mark and Susan Hill remind me of a person that doesn’t have a clue, so they make wild claims and accusations, while ignoring the facts. The result is the continuing scamming of millions of people for billions of dollars. They think I should be held accountable for liars lying to me about an illegal pyramid and RICO fraud. By the way, I am “over it” and part of my life is devoted to others note being scammed as I and millions of others have been scammed.

  2. tex2,
    You remind me of a person that went through a nasty divorce and can’t get over it. You need to take personally accountability for your over than $100,000 in losses and stop laying blame on anyone else except yourself. Get over it tex2 and get on with your life.

  3. I have read some of your blog tex2. Now do your homework. Look up the meaning of the words, “bias confirmations”. You are emotionally obsessed over this subject and you’re not looking at this objectively. Unless the current established interpretation of the law is changed your view of the law is meaningless. At most, Herbalife will get a slap on the hand for some minor infractions similar to what happened to Amway in 1979. There may arise reform of the current law which then Herbalife and the rest will simply comply. It is probably a good time to buy stock in Herbalife as it is currently undervalued by as much as 40%.

  4. I am saying it is 2014 and even IF there was adequate retailing in 1979, it doesn’t exist now. Again, Mark and Susan Hill, as rest as everyone else, should read my blog and try making an intelligent comment next time.

  5. It appears that Mark and Susan Hill haven’t read my blog (again) before responding. I suggest everyone go to my blog and go to the upper right corner, then search for the term 3.4%. Actually, I recommend you read the entire blog and make up your own minds. The truth will set you free.

  6. One more thing to consider tex2; Just because the former
    assistant AG from Wisconsin has stated that the FTC and court accepted Amway’s mere statements without confirming the statements
    means absolutely nothing. Do you know how many attorneys complain about a court ruling that has taken place? You are taking a murmuring complaint from the assistant AG from Wisconsin which took place after the fact of the FTC’s authority ruling and making it look like it holds some kind of legal clout. You are referencing this AG complaint as if it represents law but is nothing but meaningless whining.

    Look up the meaning of the words “confirmation bias” and ask
    yourself if your are guilty of this in your assessment of Amway and Herbalife.

  7. tex2,
    In a 1979 ruling, the Federal Trade Commission found that Amway does not qualify as a pyramid scheme because distributors were not paid to recruit people and had to sell products to get bonus checks, and the company was committed to buying back its distributors’ excess inventory. So are you saying that your far reaching accusations of Amway are of higher authority than the Federal Trade Commission’s ruling which now has legal precedence on such matters?
    Don’t get me wrong, I am not a fan of Amway. They oversell their product as do so many companies do. Have you ever been to a time share sales presentation? Not much different. Unfortunately, these type of overhyping sales tactics are not against the law.

  8. Mark and Susan Hill are obviously mistaken and they have NOT read my blog. I suggest everybody do so. The FTC did not TOUCH the Amway Tool Scam as a part of the 1979 court decision, and the former assistant AG from Wisconsin has clearly stated the FTC and court accepted Amway’s mere statement regarding retail sales and did NOT confirm these statements, a GROSS error on their part: google “seekingalpha-an-investors-guide-to-identifying-pyramid-schemes”

  9. Amway has been thoroughly and rigorously investigated and under its present business structure it is a legal MLM similar to Herbalife. We are talking about law here, not emotional thinking tex2.

  10. Herbalife operates very similar to Amway, the world’s largest MLM illegal pyramid and RICO fraudulent scam. Google “stop the amway tool scam wordpress”

Comments are closed.