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
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)
Wed, May 6, 12:45 PM
Wed, May 6, 9:11 AM
Tue, May 5, 5:37 PM
Tue, May 5, 4:26 PM
Mon, Apr. 6, 9:19 AM
- Herbalife (NYSE:HLF) eases 5% premarket on average volume in response to the news that federal law enforcement agencies have queried ~10 members of the company's top-level distributors about their business practices. The specifics of the interviews or the identities of the individuals are not known at this point. According the company, it has offered legal counsel to those involved.
- The company is under scrutiny for its marketing practices from various law enforcement groups. Short seller Pershing Square maintains that it operates an illegal pyramid scheme.
Mon, Apr. 6, 9:18 AM
Tue, Mar. 17, 6:54 PM
- California federal judge Dale Fischer has thrown out a shareholder class-action suit accusing Herbalife (NYSE:HLF) of running a pyramid scheme, arguing there was no evidence the company had made disclosures to investors that caused its shares to fall.
- Fischer rejected the plaintiffs' argument that a Dec. 2012 presentation from Bill Ackman's Pershing Square Capital calling Herbalife a pyramid scheme was a corrective disclosure. "The [amended complaint] and plaintiffs’ related arguments are insufficient to compel the conclusion that the Pershing presentation was based on previously unavailable information or that the information could not be understood absent expert analysis."
- "What I heard from plaintiff counsel was 'Ackman, Ackman, Ackman'," said Herbalife attorney Jonathan Dickey at a hearing earlier in March. He argued the plaintiffs, who also alleged Herbalife published false financial statements and hid attempts to pressure members to buy more products from distributors, "slavishly copied from the Ackman accusations."
- Herbalife has risen to $36.24 AH.
- Earlier: Consumer group protests Herbalife's $17M distributor class-action settlement
Fri, Mar. 13, 5:40 PM
Fri, Mar. 13, 1:46 PM
- The public affairs firm that Pershing Square's Bill Ackman hired to advance his views that Herbalife (HLF +7.7%) runs an illegal pyramid scheme, Global Strategy Group (GSG), declares that it is not the subject of a federal investigation. In a statement, GSG says, "It is our clear understanding that we are not a target of any investigation and we are confident that all our work surpasses the highest legal and ethical standards. We spoke with the government and provided full transparency into all of our efforts. GSG has never made false statements about Herbalife nor do we believe anyone else has either."
- In an interview on CNBC this morning, Mr. Ackman said that Pershing Square hired GSG who, in turn, hired subcontractors around the country. His understanding is that the FBI interviewed a "handful" of the subcontractors.
- The probe is investigating whether certain individuals made false statements about Herbalife's business model to federal officials and regulators in order to incite a federal investigation into the company and manipulating HLF's stock price.
- Previously: Herbalife +5%; Feds reportedly interview Ackman hires in manipulation probe (March 12)
Thu, Mar. 12, 6:39 PM
- The WSJ reports the FBI and prosecutors within the Manhattan U.S. attorney's office are "probing potential manipulation" of Herbalife (NYSE:HLF) shares, and have interviewed people hired by (drumroll...) Bill Ackman.
- Prosecutors are reportedly "looking into whether people, including some hired by Mr. Ackman, made false statements about Herbalife’s business model to regulators and others in order to spur investigations into the company and lower its stock price."
- Public statements and allegations passed on to regulators by Herbalife critics are being studied, as are connections between those critics and Ackman, who has taken a $1B short position against Herbalife.
- The paper cautions "neither Mr. Ackman nor Pershing Square has been served with a subpoena or been visited by FBI agents in connection with the probe." A spokesman for Ackman's Pershing Square Capital insists the firm has been "completely transparent about our position and our research," and acted lawfully.
- Herbalife has jumped to $34.90 in AH trading.
- Previously: Ackman predicts Herbalife will collapse in a year
- Previously: Ackman calls Herbalife a pyramid scheme in interview
- Previously: Pershing posts new Herbalife-bashing video
Thu, Feb. 26, 4:21 PM
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