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Law professor Daniel Ravicher says Herbalife's (HLF) business partners, eBay (EBAY), FedEx...

Law professor Daniel Ravicher says Herbalife's (HLF) business partners, eBay (EBAY), FedEx (FDX), and NYSE Euronext (NYX), are now legally obligated to investigate claims HLF is a pyramid scheme - and as a shareholder he's demanding they do so. Ravicher says HLF's model - paying out more for onboarding new distributors than for product sales - makes it a pyramid, and thinks companies will be forced to cut ties with HLF, strangling it.
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Comments (8)
  • daro
    , contributor
    Comments (1577) | Send Message
     
    that sounds a bit far fetched.
    5 Feb 2013, 02:18 PM Reply Like
  • axd07
    , contributor
    Comments (60) | Send Message
     
    I believe HLF is a pyramid scheme but why would the business partners investigate??!! That makes no sense Professor, the Feds are not investigating but here is the FedEx Accounting department asking for the HLF payouts documents. That is so stupid i don't get how you got to be a professor.
    5 Feb 2013, 02:43 PM Reply Like
  • lucagrs
    , contributor
    Comments (68) | Send Message
     
    if you want an unbiased opinion, you should look at this: http://bit.ly/WN2C3g
    5 Feb 2013, 04:52 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5584) | Send Message
     
    I have one question, why does anybody care if it is a pyramid scheme? If it works, so what?
    5 Feb 2013, 08:43 PM Reply Like
  • Colibrisa
    , contributor
    Comments (11) | Send Message
     
    The professor too, is apparently an idiot. Herbalife pays not one cent for recruiting. I am not sure why this is so hard for people to understand. Commissions are paid on the sales volume of your team, not for recruiting anyone. Obviously, one could make more money from the sales volume of a large team than your personal sales. Duh! That is the point, not only of a multilevel business, but of any sales enterprise. Furthermore, eBay is most certainly not a sales partner of Herbalife in any way. These are stupid and tired arguments. Why expose your stupidity in a public forum like this, professor and sycophants?
    5 Feb 2013, 09:37 PM Reply Like
  • axd07
    , contributor
    Comments (60) | Send Message
     
    I don't agree that other companies have to investigate HLF, that's just nonsense...but HLF DOES pay for recruiting...they just call it a commission... you missed to whole point...the question is how much is recruiting pay vs commission pay...at the end of the day, HLF its a pyramind scheme, no question about it, but that business partners should investigate them, that's just stupid. SEC should investigate.
    6 Feb 2013, 04:45 PM Reply Like
  • Weblands
    , contributor
    Comments (5) | Send Message
     
    If the business partners' stockholders suffer a loss related to HBL and it turns out that the partners didn't even investigate and analyze the charges after the direct, seemingly irrefutable Bill Ackman thesis was spelled out before millions on the internet it could well be found to be to be negligence or even gross negligence in violation of the Board's duties to shareholders.
    6 Feb 2013, 02:04 AM Reply Like
  • valuedriver
    , contributor
    Comments (67) | Send Message
     
    He should post his legal memo that supports his legal conclusions. There was no legal analysis and the author misstated the law on shh suits and legal standing.
    6 Feb 2013, 12:33 PM Reply Like
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