Tue, Sep. 15, 12:25 PM
- Pershing Square Capital Management, led by activist investor Bill Ackman, publishes a slide presentation that compares Herbalife (HLF +1.9%) to Vemma Nutrition Company, a pyramid scheme shut down by the FTC in August.
- The market appears unconcerned. Shares are up today, albeit on light volume, and up 107% from the low of $27.60 on January 7.
Wed, Aug. 26, 12:42 PM
- “Rather than focusing on selling products, Vemma uses false promises of high income potential to convince consumers to pay money to join their organization," says the FTC's Jessica Rich, using words that may give pause to investors in Herbalife (HLF -2.9%).
- Vemma is a privately-held multilevel marketing company selling energy drinks, nutritional beverages, and weight management products.
- NuSkin (NUS +1.2%), USANA (USNA -0.8%)
Thu, Aug. 6, 12:43 PM
Wed, Aug. 5, 4:29 PM
- Herbalife (NYSE:HLF) Q2 results ($M): Global Net Sales: 1,162.3 (-11.0%); North America: 230.0 (-8.2%); Mexico: 129.2 (-13.1%); South/Central America: 133.5 (-34.4%); EMEA: 193.8 (-14.7%); Asia Pacific: 239.1 (-21.9%); China: 236.7 (+39.2%).
- Royalty Overrides: 318.7 (-18.4%); Net Income: 82.8 (-30.7%); EPS: 0.97 (-26.0%); CF Ops: 197.6 (+25.9%).
- Volume Points: North America: 305.4 (-9.1%); Asia Pacific: 271.2 (-15.3%); EMEA: 228.3 (+4.3%); Mexico: 219.9 (-4.9%); South/Central America: 173.1 (-16.1%); China: 164.0 (+38.4%).
- 2015 Guidance: Volume Point Growth: (4.0 - 1.0%) (unch); Net Sales Growth: (9.5 - 6.5%) (unch); Non-GAAP EPS: $4.50 - 4.70 from $4.30 - 4.60; CF Ops: $340M - 380M from $320M - 330M.
- Q3 Guidance: Volume Point Growth: (4.0 - 1.0%); Net Sales Growth: (10.0 - 7.0%); Non-GAAP EPS: $1.00 - 1.10.
Wed, Aug. 5, 4:23 PM
Tue, Aug. 4, 10:22 AM| Tue, Aug. 4, 10:22 AM | 30 Comments
Wed, Jul. 29, 1:15 PM
- Embattled nutritional products seller Herbalife (HLF +4.4%) continues to swat pesky lawsuits away. Today, U.S. District Court Judge Dale Fischer dismissed a lawsuit brought by the Oklahoma Firefighters Pension and Retirement System that accused the company of misrepresenting its sales practices as legitimate when, in fact, it is an illegal pyramid scheme. The judge, who dismissed an earlier version of the complaint in March, stated that the plaintiff failed to show that the defendants defrauded shareholders by concealing the company's inability to track retail sales.
- The judge also said that CEO Michael Johnson's selling of 12% of his Herbalife stake, while "undeniably large," did not raise suspicions nor did disclosures by top execs that they expected "some form of disciplinary action" over the sales practices issue.
- Attorney Maya Saxena, representing Oklahoma Firefighters says, "We are disappointed with the ruling and will determine our next steps after consultation with the client."
- The plaintiff has until August 27 to file an amended complaint.
- The case is: Herbalife Ltd Securities Litigation, U.S. District Court, Central District of California, No. 14-02850.
- Previously: Herbalife +5.3%; shareholder lawsuit dismissed (March 17)
Mon, Jun. 29, 11:05 AM
- Herbalife (HLF +1.1%) appoints Eric Rosen as vice president of government relations and director of its Washington, DC office. Mr. Rosen worked for Senator Joe Biden for five years as Judiciary Committee counsel. Before that, he worked in the U.S. Attorneys office for the Northern District of California.
- He will report to Ric Hobby, the head of the company's global government relations team.
Fri, Jun. 26, 3:51 AM
- The Herbalife (NYSE:HLF) drama continues...A video (dating back to 2005) seen by the NY Post displays CEO Michael Johnson bad-mouthing the company with criticisms one would expect to hear from Bill Ackman.
- Success in Herbalife, he decried, was a "lottery ticket," with few making it to the top ranks. In fact, he said, distributors had sometimes engaged in "false promises, claims, in hopes for product, for money, for recruiting, for customers, for pyramiding."
- Related: Ackman ramps up his bearish views on Herbalife in interview (Dec. 17 2014)
- Related: Pershing posts new Herbalife-bashing video (Dec. 11 2014)
Tue, May 26, 8:31 AM
- Herbalife (NYSE:HLF) adds three new executives to its global corporate affairs organization. Company veteran Ric Hobby, who has been on board for 27 years, will serve as senior vice president for global government relations. Megan Jordan, joining the firm from Southern California Edison, will serve as senior vice president for global corporate communications and Randall Popelka, a Capital Hill veteran and former member of the George W. Bush administration, will serve as vice president, government and industry affairs.
- Julian Cacchioli will continue his role as vice president of global corporate communications but will take on the added responsibilities of coordinating Herbalife's global public policy strategy and overseeing its corporate responsibility program.
- Elaine Pacheco will assume a new role as strategic project manager in the office of the executive vice president for global corporate affairs.
Thu, May 14, 8:03 PM
- The U.S. District Court for the Central District of California grants final approval of the $15M class action settlement in the matter of Dana Bostick v. Herbalife International of America (Case # CV 13-02488-BRO). Plaintiffs lawyers, anticipating a bigger payday from a hoped-for increase in the award, are, no doubt, returning their champagne to the cellar.
- Previously: Herbalife class-action settlement hearing to tap for Monday (May 7)
Thu, May 7, 11:42 AM
- The hearing to finalize Herbalife's (HLF +1.1%) $15M settlement of a class-action lawsuit brought by a former salesperson is scheduled for Monday. The suit, from former distributor Dana Bostick, accused the company of running a pyramid scheme. It may be a lively affair. Ad watchdog truthinadvertising.org filed a brief with the court in March opposing the settlement, saying at least $100M is necessary to fairly compensate the class. Also filing a formal objection to the modest settlement is a group of former distributors organized by the League of United Latin American Citizens.
- Previously: Consumer advocacy group takes exception to proposed Herbalife class-action settlement (March 17)
- Previously: Former distributors reject Herbalife proposed settlement (Feb. 17)
Wed, May 6, 12:45 PM
Wed, May 6, 9:11 AM
Tue, May 5, 5:37 PM
Tue, May 5, 4:43 PM
- Herbalife (NYSE:HLF) Q1 results ($M): Global Net Sales: 1,105.4 (-12.5%), COGS: 215.4 (-14.3%); Royalty Overrides: 323.0 (-15.4%); Net Income: 78.2 (+4.8%); GAAP EPS: 0.92 (+24.3%); Quick Assets: 715.5 (-43.3%); CF Ops: 161.1 (-15.5%).
- Sales by Region: North America: 226.7 (-8.6%); Asia Pacific: 242.8 (-13.4%); EMEA: 186.4 (-11.7%); China: 164.2 (+20.8%); South/Central America: 161.7 (-33.9%); Mexico: 123.6 (-13.4%).
- Volume Points (M): North America: 297.8 (-11.5%); Asia Pacific: 265.9 (-12.0%); EMEA: 228.4 (+13.0%); South/Central America: 210.5 (-7.6%); Mexico: 203.4 (-7.6%); China: 113.7 (+24.8%).
- 2015 Guidance: Volume Point Growth: (4.0 - 1.0%) from (4.5 - 1.5%); Net Sales Growth: (9.5 - 6.5%) from (9.0 - 6.0%); Non-GAAP EPS: $4.30 - 4.60 from $4.10 - 4.50; CF Ops: $320M - 330M from $310M - 320M.
- Q2 Guidance: Volume Point Growth: (7.5 - 4.5%); Net Sales Growth: (13.5 - 10.5%); Non-GAAP EPS: (1.05 - 1.15).
- Shares are up 16% after hours on robust volume.
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