Herbalife facing FTC inquiry; shares plunge

[The Straight Story]

PORTLAND, Ore. (AP) — Herbalife Ltd. says that it is facing an inquiry from the Federal Trade Commission.

The nutrition and supplement company's shares initially plunged more than 12 percent following a brief halt in trading pending the announcement.

Herbalife said that it received the civil investigative demand from the FTC on Wednesday. The FTC's website says that these are used to investigate possible "unfair or deceptive acts or practices." A representative from the FTC was not immediately available to elaborate.

The company, which has faced accusations of operating a pyramid scheme, said that it welcomes the inquiry given "tremendous amount of misinformation in the marketplace" about its business.

http://bigstory.ap.org/article/herbalife-facing-ftc-inquiry-shares-plunge

[LibDemAlways]

1. It is a pyramid scheme. I know a woman who has been in

on it since the beginning. Has raked in many millions by virtue of being at the top. Nothing more than a grifter. This investigation is long overdue.

[hlthe2b]

2. Wow.. 'didn't know they were even still around...

What took so long? It has been well known to be a pyramid scheme for decades.

[Wellstone ruled]

3. And away we go--------

Avon------- Tupperware----------Various Juices sold in MLM home party's. Timberrrrrrrrrrrrrrrr.

[PhilSays]

4. All MLM scams should be ruthlessly destroyed.

This is good news.

[okaawhatever]

5. Reuters says Sen. Ed Markey asked for the investigation. Good for him. nt

[okaawhatever]

6. A lot of the multi level marketing plans are neo-conservatives who give heavily to GOP

donors. The Amway owners are heavily involved nationally and practically own their state party.

[kcr]

7. Good, hope they are shut down.

Amway or whatever it is they're called now should be next.

[hedda_foil]

8. Sounds good, until you find out that a hedge fund billionaire is behind the takedown.

Of COURSE Herbalife is a scam, but the most interesting part of this investigation may be who is orchestrating the sudden outrage and why. Check out this post from liberal N proud based on a NYT report on Monday.

http://sync.democraticunderground.com/10024637900

How to make money in America in the 21st century

After Big Bet, Hedge Fund Pulls the Levers of Power

Staking $1 Billion That Herbalife Will Fail, Then Lobbying to Bring It Down

WASHINGTON — At a Midtown Manhattan steakhouse last June, William A. Ackman, the activist hedge fund manager who had bet a billion dollars on the collapse of the nutritional supplement company Herbalife, offered his latest evidence to a handful of other hedge fund managers about why the company’s stock could soon plummet.

Mr. Ackman told his dinner companions that Representative Linda T. Sánchez, Democrat of California, had sent a letter to the Federal Trade Commission the previous day calling for an investigation of the company.

The commission had not yet stamped the letter as received, nor had it been made public. But Mr. Ackman, who had personally lobbied Ms. Sánchez and stood to profit if the company’s stock dropped as a result of the call for an inquiry, already knew what it said, and read from a copy of it that he had on his cellphone.

http://www.nytimes.com/2014/03/10/business/staking-1-billion-that-herbalife-will-fail-then-ackman-lobbying-to-bring-it-down.html?emc=edit_th_20140310&nl=todaysheadlines&nlid=45299538&_r=0


This is why they don't needs jobs to make money, they have learned how to make money destroying companies. (Comment from original poster.)

[siligut]

9. This is not sudden, it has been going on for years

China's recent investigation into another MLM bled into Herbalife and that may have added more weight to Ackman's concern, but it is not at all sudden. Did Ackman make money off of shorting HLF? I hope so.