Archive | Herbalife

Posted 20 April 2020

Global direct sales company Herbalife Nutrition Ltd. has recently extended its decades-long record of being the subject of regulatory actions.

• Last year, it agreed to pay $20 million to settle Securities and Exchange Commission (SEC) charges that it made false and misleading statements in numerous U.S. regulatory filings about the compensation model for its China-based service providers. SEC alleged that the actual model used is multilevel and based on downline purchases rather than hours worked. While direct selling is permitted in China, multilevel marketing is not. SEC found that Herbalife’s misleading statements deprived investors of the information they needed to fully evaluate the risk of investing in Herbalife stock.
  Reference: Herbalife to pay $20 million for misleading investors. US Securities and Exchange Commission press release. Sept 27, 2019

• Two former company executives, Yanliang Li and Hongwei Yang, were charged in November on criminal and

Posted 04 March 2013

Herbalife research connections questioned. 

The Los Angeles Times has published a startling report about the financial relationships between Herbalife, prominent researchers who been promoting the company, and the University of California-Los Angeles Geffen School of Medicine. [Hiltzik M. Herbalife cozies up with UCLA Los Angeles Times, Feb 22, 2013] The report notes:

Posted 29 September 2011

This medical article concludes: ” Our results support the relationship between the consumption of Herbalife products and hepatotoxicity, underscore the concern regarding the liver-related safety of this dietary supplement, and emphasize the need to establish further regulatory measures.”