From time to time, we receive inquiries from various government authorities requesting information from the Company. Following December 2012 market events and a subsequent meeting we requested with the staff of the SEC's Division of Enforcement, the staff requested information regarding the Company's business and financial operations. Consistent with its policies, the Company is and will fully corporate with these inquiries.
This language seems quite ambiguous to me. It starts of by saying the company "receives inquiries" "from time to time", but then implies that a current SEC inquiry initiated during or after December 2012 is the result of Herbalife's request for such inquiry.
It's not clear what Herbalife means by "December 2012 market events", although one can assume it at least includes the presentation by Bill Ackman on December 20, 2012, explaining why Herbalife is a fraudulent pyramid scheme. It is also unclear if anything happened between those "market events" and the "subsequent meeting we requested with the staff of the SEC's Division of Enforcement".
It leaves me wondering who really initiated this discussion, Herbalife or the SEC? Regardless, the company is now admitting that the SEC is inquiring into its "business and financial operations".
Disclosure: I am short HLF.