Pershing Square – Herbalife Ltd. (HLF) “The Big Lie” [SLIDES]

Herbalife Lretail ssales 2

Pershing Square presentation on Herbalife Ltd. (NYSE:HLF) titled “The Big Lie.” H/T Julia La Roche

Herbalife a pyramid scheme:

From the Federal Trade Commission:

“ Every pyramid or Ponzi scheme collapses because it cannot expand beyond the size of the earth’s population. When the scheme collapses, most investors find themselves at the bottom, unable to recoup their losses.”

From the Securities and Exchange Commission:

The fraudsters behind a pyramid scheme may go to great lengths to make the program look like a legitimate multi-level marketing program. . . . But eventually the pyramid will collapse.”

From the New York Attorney General:

“Why Do Pyramid Schemes Always Fail?

“ Since there are only a limited number of people in a given community, all pyramid schemes will ultimately collapse. The only people who make money are those few who are on the top of the pyramid.”

In Herbalife’s Own Words – “The Classic Pop-and-Drop”

China is 1.3 billion people, you can recruit for a long time there before we had what was called the classic ‘pop-and-drop’ in that marketplace.” – Michael Johnson, Herbalife Ltd. (NYSE:HLF) CEO, 8/6/08

“ We went into India ten years ago. And we went in and it was a big – it’s called pop and drop. You go in. A lot of distributors come in. They recruit and you get a lot of volume. Those distributors leave the country and you get a big drop.” – John DeSimone, Herbalife CFO, 3/10/10

CEO Michael Johnson: “The Classic Pop-and-Drop”

Herbalife: Retail Sales Declined Significantly After the 1986 Injunction in California

Herbalife Ltd. (NYSE:HLF)’s U.S. “Retail Sales” declined 70% cumulatively for the five year period following the 1986 injunction

Herbalife retail sales

Herbalife: Retail Sales Significantly Increased After 1992 Infinity Bonus

Herbalife Ltd. (NYSE:HLF)’s U.S. “Retail Sales” increased 890% cumulatively for the seven years following the introduction of the “Production Bonus” (also known as “infinity bonus”)

Herbalife retail ssales 2

See full Herbalife Ltd. (HLF) “The Big Lie” in PDF format here.

Herbalife Nutrition Club Presentation the Big Lie

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