Herbalife Ltd. (NYSE:HLF) Vs Pershing Round 1,000. First the latest from Herbalife.
LOS ANGELES, July 17, 2014 (GLOBE NEWSWIRE) — Herbalife Ltd. (NYSE:HLF), a leading global nutrition company, today issued the following statement regarding the strength and integrity of its business:
Herbalife is first and foremost a company that offers world class products that people want
Founded in 1980, Herbalife Ltd. (NYSE:HLF) researches, develops, produces and markets protein shakes, vitamins and dietary supplements, and energy and fitness drinks that, when paired with good nutrition and exercise, is a combination for a healthy, active lifestyle. There is proven demonstrated demand for Herbalife Ltd. (NYSE:HLF) products by millions of consumers.
Herbalife has the utmost trust in the integrity of our business model and that we are in compliance with all applicable laws and regulations. We are cooperating fully with the FTC and welcome the opportunity to clear up misinformation in the marketplace.
Herbalife stands behind the quality of our products and our commitment to member satisfaction and consumer protection
Herbalife Ltd. (NYSE:HLF)’s ‘Gold Standard’ consumer-protection rules not only meet, but exceed the standards prescribed by the Direct Selling Association (DSA), of which the Company is a long-time member in good standing. The Company maintains a policy to buy back – for 100% of the purchase price, plus free return shipping and handling – any products purchased during the prior 12 months from any individual no longer interested in retaining their membership. In addition, all new members receive a letter immediately after joining reminding them of the buyback protection, and a similar reminder is included in every single order brochure. In fact, buyback rates in the U.S. have continued to decline over each of the past four years and is currently below one quarter of one percent.
Studies have revealed that the vast majority of Herbalife members have realistic expectations of the business opportunity and the effort required to succeed at all levels.
Herbalife member-sponsored nutrition clubs play a positive role in promoting a community-based approach to health and wellness across the United States
Nutrition clubs advance Herbalife Ltd. (NYSE:HLF)’s mission of helping people lead healthier lives. Our community-based approach to health and wellness is well recognized as an important tool in helping create and sustain changes in behavior – but don’t take our word for it. Researchers at the University of Pennsylvania recruited 166 people to participate in a weight-loss program either alone or with three friends or family members. Among those who embarked on the program with friends, 95 percent completed the program compared to only 76 percent of those who dieted solo. After 10 months, 66 percent of the group dieters had maintained their weight loss compared to only 24 percent of those who were on their own. Furthermore, the American Psychology Association has confirmed that “It’s easier to stick with a weight loss plan when you have support.”
Herbalife Ltd. (NYSE:HLF) continues to face an unprecedented and unrelenting attack from Pershing Square to support its $1 billion bet to manipulate and drive Herbalife’s stock price to zero to the detriment of our investors, members, customers and employees. Herbalife is confident that the facts are on its side and that it will overcome Pershing Square’s campaign of misinformation about the Company as the truth about Pershing Square’s increasingly desperate accusations is revealed.
Pershing Square’s thesis about Herbalife’s business model is simply false
In fiscal year 2013, Herbalife reported U.S. Net Sales of approximately $881 million. During that same period, Herbalife had 525,251 members in the United States. Under Herbalife’s buyback policy, each resigning members was entitled to return all of their unsold and unconsumed products and obtain a refund. A pillar of Pershing Square’s thesis is its assertion that there is no genuine consumer demand. Thus, Pershing Square’s thesis is built upon the proposition that last year, roughly a half million people collectively decided to simply discard $881 million worth of Herbalife products rather than get the refund to which they were entitled. And, according to Pershing Square, this has happened every year for the past 34 years.
Pershing Square’s information, presentations and representations cannot be trusted
Among other things, it has been widely reported that Pershing Square and its agents have concealed financial arrangements, misrepresented affiliations and orchestrated artificial “grassroots” events, all in an attempt to manipulate Herbalife’s stock price for Pershing Square’s financial gain. Pershing Square has shown that there is no line it will not cross, stating publicly it would take this attack on Herbalife “to the end of the earth.”
Attacks on Herbalife Ltd. (NYSE:HLF) have been clearly orchestrated by Pershing Square and its agents. Pershing Square’s attack on the Company lacks any impartiality or accountability. Pershing Square has no duty to any member of the public and is unhindered by the disclosure obligations imposed upon publicly traded corporations. With Pershing Square’s limited accountability, in light of the historical regulatory scrutiny placed on Herbalife, it has made the astonishing claim that it is a “provable certainty” Herbalife is a massive, sprawling fraud that had gone undetected for more than 30 years. Pershing Square is claiming that decades of Herbalife management, and a material number of members had all kept this secret.
Pershing Square has admittedly spent more than $20 million and 18 months trying to find former Herbalife members from as far back as 2008 that will complain about their experience with the Company. In fact, Pershing Square has even been willing to pay multi-million dollar bounties to anyone willing to generate negative publicity against Herbalife and support Pershing Square’s agenda.
During this timeframe, more than 1.6 million members have joined Herbalife in the U.S. If even 1 out of 10,000 of those members had a complaint, that would yield 1,600 complaints. The reason why Pershing Square has so few relative voices is because, as demonstrated through third party studies, the overwhelming majority of our members have been very satisfied, and we are proud of that track record. In fact, Pershing Square’s own well-financed campaign to find dissatisfied customers has actually largely validated our consumer reputation.
Ultimately, Pershing Square’s campaign is based on propaganda, and we look forward to demonstrating that its assumptions will crumble under serious and independent scrutiny.
Pershing Square’s latest salvo
Pershing Square Capital Management today announced an upcoming webcast about its investigation of Herbalife Ltd.’s Nutrition Clubs. The webcast will be hosted live on www.HerbalifePyramidScheme.com at 10:00 AM EDT on Tuesday, July 22 with an opportunity to submit questions at the end. The in-depth analysis and examination of these clubs reveal that they are another deceptive facet of Herbalife’s pyramid scheme.
LULAC of Lake County announced today that they will be holding a protest tomorrow at the opening of Herbalife’s Chicago Extravaganza. The media advisory on the event is pasted below.
Consumer and immigrant rights groups support victims in solidarity with Afuera Con Herbalife Campaign
What:
Recognizing the number of immigrants that have become victim of Herbalife Ltd. (NYSE:HLF)’s predatory pyramid scheme and deceptive business practices, consumer and immigrant rights groups will protest Herbalife’s Chicago Extravaganza to show solidarity with the ongoing Afuera Con Herbalife campaign. Earlier this week, community leaders announced another group of victims who filed complaints with both the Illinois Attorney General’s office and the Federal Trade Commission (FTC), claiming financial losses due to their involvement with Herbalife.
“As we continue to raise awareness about Herbalife’s abusive business practices, we have identified a disproportionate number of the victims also being immigrants,” said Julie Contreras, President of LULAC of Lake County. “Immigrants are particularly vulnerable because many do not speak English, are often separated from family and friends, and may not understand the laws of the United States that provide protection and restitution from financial scams.”
Last May, Attorney General Madigan announced her office had launched an investigation into Herbalife Ltd. (NYSE:HLF) – joining separate investigations by the Federal Bureau of Investigations (FBI), Federal Trade Commission (FTC), Securities and Exchange Commission (SEC), Department of Justice (DOJ), and the New York Attorney General.
“Herbalife’s financial success is built on defrauding hardworking men and women in Illinois. The pizzazz and glamour of this extravaganza only helps to promote Herbalife’s get-rich-quick scheme to appeal to the most vulnerable members of our community,” said Elizabeth Guerrero, Field Manager with the Brighton Park Neighborhood Council.
When:
Friday, July 18, 2014
10 am
Where:
All State Arena
6920 N Manheim Rd.
Rosemont, Illinois
Contacts:
Julie Contreras
773-682-3963
