Posted 02 September 2020
Multilevel marketing company Herbalife Nutrition, Ltd. has entered into a deferred prosecution agreement to resolve federal charges that it conspired over a ten-year period to bribe to Chinese officials and falsify its accounting records to promote and expand its business in China. Under the agreement, Herbalife admitted to violations of the Foreign Corrupt Practices Act and promised to pay penalties totaling more than $123 million. By 2016, Herbalife’s business in China accounted for $850 million, which was about 20% of its worldwide annual net sales.
Reference: Herbalife agrees to pay $123 million to resolve Foreign Corrupt Practices Act case. US Attorney’s Office for the Southern District of New York news release, Aug 28, 2020
MLM Watch has an archive of information about Herbalife collected over more than 30 years that includes regulatory actions and lawsuits against the company.
Source: Consumer Health Digest #20-34, August 30, 2020