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Teflon: Herbalife shrugs off city councilman's FTC letter

It's almost as if shares of Herbalife (HLF +3.8%) relish any opportunity to rally in the face of negative press.

The stock is surging on the last day of the quarter, even as a letter from Boston City Councilor Tito Jackson to the FTC surfaces.

"I urge you to [conduct a] thorough investigation into HLF's sales and marketing practices to ensure my constituents and the residents of Boston are protected,” Jackson says in the letter, after noting that he has received complaints alleging the company preys "on disadvantaged populations ... offering them 'income and hope,’ [and instead delivers] ... 'debt and despair.’"

Despite the controversy, the stock continues to bedevil shorts and is up nearly 17% in September alone.

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Comments (8)
  • NYPaperman
    , contributor
    Comments (36) | Send Message
    Didn't Tito used to be in the Jackson 5? Bad Tito! Bad boy!
    30 Sep 2013, 11:14 AM Reply Like
  • bernard_k50
    , contributor
    Comments (160) | Send Message
    Oh dear! Looks like the scare - tactics fail. The payed bashers are turning up by the dozens. It's like poking in a hornet nest.
    And still we rise....
    Wait for the next wave of the squeeze. Or cover your shorts.
    Your choice!
    30 Sep 2013, 11:14 AM Reply Like
    , contributor
    Comments (4) | Send Message
    For the past 4 years I have been working on Melitten and Phospholipids and think I have the bet palliative possible or a cure for Alzheimers, Lupus, MS, Aids/Hiv arthritis, Hi Blood Pressure ,Asthma and urinary problems, I am hoping I can get Herbalife to market for me.when I am ready later this year
    Dr Glen Whitten
    30 Sep 2013, 11:51 AM Reply Like
  • powershake
    , contributor
    Comments (2006) | Send Message
    And I have a buyer --- his name is Ackman, call pershing square
    30 Sep 2013, 12:20 PM Reply Like
    , contributor
    Comments (4) | Send Message
    For the past 4 years I have been working on phospholipids and Melitten and think I have the best possible palliative or a cure for MS,Lupus, High Blood Pressure, Kidney problems, Alzheiimers,Hiv/Aids, Herpes related diseases and other viral problems like colds, flu and perhaps cancer as a preventive not a cure. DrGlenWhitten
    30 Sep 2013, 11:51 AM Reply Like
  • jimmyb1955
    , contributor
    Comments (6) | Send Message
    Tito Jackson says HLF is “praying [sic] on disadvantaged populations and offering them income and hope..”
    And from the Boston Herald a few weeks ago:
    Boston City Councilor Tito Jackson is throwing his support behind a citywide casino vote for Suffolk Downs, going against the majority of his colleagues and Mayor Thomas M. Menino — who want an Eastie-only vote. “If there is going to be a casino in the eastern part of the state, I believe it should be in Boston,” he told the Herald.
    In 1999, the bipartisan National Gambling Impact Commission found that players with annual incomes of less than $10,000 spent almost three times as much on gambling -- in aggregate, real dollars -- as those with incomes of more than $50,000.


    30 Sep 2013, 05:14 PM Reply Like
  • socran
    , contributor
    Comments (10) | Send Message
    T J is getting paid. By whom......mmmm?
    1 Oct 2013, 02:01 AM Reply Like
  • herbs4mike
    , contributor
    Comments (2079) | Send Message
    Another proxy for Ackman..... I wonder if everybody's campaign contributions will be public and how many will have Ackman's influence on it.
    2 Oct 2013, 03:25 PM Reply Like
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