Yeah, I know. Not a big surprise.
But this time, the ruling came from the FTC, and carries with it a $200 million fine, and instructions to restructure the business model way from recruiting new distributors (with often fraudulent claims about likely income and profits) and toward actually providing product that meets the hype.
A previous case in 2014, brought by shareholders and heard by U.S.District judge Dale Fischer went nowhere, with Fischer dismissing much of the substance of the complaint, which makes me wonder about his finances and ethics, [In re Herbalife, ltd: Securities Litigation, 14-CVB02850],but the current settlement was a brokered one that bypassed Fischer’s court.
Having billionaire William Ackerman as one of the backers of those filing the suit against Herbalife had to have helped. Money still talks.
Interestingly enough, Herbalife’s stock rose after the decision.