BLOOMBERG: Allegations of a pyramid scheme are hurting the company, which saw its stock drop 53 percent over the last 12 months.
BLOOMBERG: Allegations of a pyramid scheme are hurting the company, which saw its stock drop 53 percent over the last 12 months.
Chief Executive Officer Michael Johnson has battled hedge fund manager Bill Ackman for more than two years over the billionaire’s allegation the company is an illegal pyramid scheme. The U.S. Federal Trade Commission is investigating the claim, which the company has repeatedly denied. The pressure has prompted Herbalife to rein in its sales practices, which will lead to more muted growth this year.
“This is not what you or we expect from Herbalife, and we can and will, do better,” Johnson said Thursday during a conference call.
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