Herbalife Ltd. just reported earnings which have sent shares soaring, currently up over 15% in post market trading, no doubt to the great delight of Mr. Ramey. We will have more coverage of the earnings and conference call tomorrow but wanted to point out one item which a smart source of ours (who holds a short position in the company) brought to our attention regarding the DOJ inquiry into the battle ground stock.
See the text below:
There was a small item in Herbalife Ltd. (HLF) reporting today that most would overlook but thought I should point out which I thought would be of interest to ValueWalk readers. The new discloser in the 10 Q:
The specific line is:
The Department of Justice recently sought information from the Company, certain of its Members and others regarding allegations being made about the business practices of the Company and its Members.
The section is:
‘For example, the Company has previously disclosed inquiries from the Federal Trade Commission, Securities and Exchange Commission and other governmental authorities.The Department of Justice recently sought information from the Company, certain of its Members and others regarding allegations being made about the business practices of the Company and its Members. In the future, these and other governmental authorities may determine to seek information from the Company and other persons relating to these same or other allegations. If the Company believes any governmental or regulatory inquiry or investigation is or becomes material it will be disclosed individually. Consistent with its policies, the Company has cooperated and will continue to fully cooperate with any governmental or regulatory inquiries or investigations.”