Apr. 24, 2014, 4:57 AM
- Herbalife (HLF) disciplined almost 600 distributors last year for making false medical claims about the company's nutrition products. The company even stripped 12 people of their distributorships.
- Herbalife disclosed the figures to ABC News following an undercover investigation in which the channel found distributors saying that the products could help treat illnesses such as diabetes, heart disease and even a brain tumor.
- The investigation comes as Herbalife faces probes by several authorities into whether it is a pyramid scheme.
Apr. 15, 2014, 3:13 PM
- Herbalife (HLF +2.8%) shares bounce back after NY Times' Dealbook reports that the federal inquiry into the company shows no signs of developing into criminal case at this point, no grand jury subpoenas appear to have been issued, and FBI agents have not started interviewing witnesses.
- Reports earlier today suggested NY's AG threw his hat into the ring of investigations over pyramid scheme allegations around HLF.
Apr. 15, 2014, 11:17 AM
- New York Attorney General Eric Schneiderman launches an investigation into Herbalife (HLF -2.9%) to determine if its business is a pyramid scheme.
- The state has the fourth highest number of distributors in the U.S.
- Last week the DOJ and FBI started their own inquiries.
Apr. 11, 2014, 3:53 PM
- The FT reports the DOJ and FBI have joined the list of government agencies probing Herbalife (HLF -13.8%). Shares have nosedived in response.
- Herbalife says it has "no knowledge" of any DOJ or FBI investigation, and hasn't received any requests for information from the agencies.
- Herbalife received an FTC inquiry notice last month, and a U.S. senator sent letters to the FTC and SEC in January requesting investigations.
Apr. 3, 2014, 9:01 AM
- Sotheby's (BID) stock price does a pretty good job tracking speculative bubbles, says Jim Chanos appearing on Squawk Box with this chart to explain his short of the name.
- On China: The government is "panicking" over the economic slowdown. "One has to keep in mind, if you're a Western investor in stocks and bonds in China, you are investing in a scheme, not a market ... You are basically providing capital to them and you might not see any profits or dividends from them."
- On the Dow's best-performing stock of the year: Chanos says he's still short Caterpillar (CAT).
- Multi-level marketers, i.e. Herbalife (HLF): It's "no secret we side with the bears on this one."
- On the round-trip in Greek bond yields (they're back to pre-crisis levels): "I find that stunning ... and scary."
- China ETFs: FXI, PGJ, GXC, FXP, YINN, KWEB, HAO, ASHR, CHIQ, TAO, CHIX, YANG, CQQQ, MCHI, PEK, QQQC, XPP, YAO, CHXX, YXI, CHII, CHXF, ECNS, CHIM, CHIE, KFYP, FCA, TCHI, CHNA, KBA
Mar. 28, 2014, 1:40 PM
Mar. 24, 2014, 9:12 AM
Mar. 24, 2014, 7:14 AM| 8 Comments
Mar. 18, 2014, 4:45 PM
- Nu Skin (NUS) is down 2.8% in after-hours trade after the release of its 10-K, with Bloomberg reporting the company is temporarily suspending some promotional meetings in China. "It is likely that we will be fined and could potentially face some other form of sanctions from these regulators."
- HLF -0.6%
Mar. 13, 2014, 5:01 PM
- Herbalife's (HLF) annual meeting will now be held on April 29 rather than April 24. (PR)
- The company continues to talk with top investor Carl Icahn regarding "potentially adding additional Icahn nominees to Herbalife's board." Herbalife agreed to add two Icahn-nominated directors last year.
- HLF +0.9% AH after falling 5.4% in regular trading, adding to yesterday's FTC-driven losses.
Mar. 12, 2014, 1:53 PM
Mar. 12, 2014, 1:45 PM
Mar. 12, 2014, 1:37 PM
Mar. 12, 2014, 1:32 PM
Mar. 12, 2014, 1:26 PM
Mar. 12, 2014, 4:31 AM
- Bill Ackman has accused Herbalife (HLF) of breaking direct-selling laws in China - the nutrition company's fastest growing market - by making recruits pay entry fees and allowing distributors to recruit new members.
- The allegations appear to be Ackman's latest attempt to prompt authorities to investigate Herbalife, on which he has a $1B short position.
- The company responded by saying it complies with Chinese rules, while legal experts in the country said the law is anyway unclear and enforcement is lax.
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