The inquiries focus in on the top selling Herbalife providers, mostly independent contractors who sell the product via social media and real life. Though they aren’t revealing exactly who the government has spoken to as of this morning, the company is in the process of helping those members gain legal counsel and information on their rights.
The company recently faced reports that stock market manipulation after irregular trading was reported.
Last night before CNBC broke the news, Herbalife spokesman Alan Hoffman provided them with the following statement:
“Bill Ackman has been engaged in a nearly three-year effort to drive down Herbalife’s stock in order to enrich himself and his investors. There is reportedly an ongoing federal criminal investigation into his campaign against Herbalife for stock manipulation and law enforcement and regulators have recently sought information from Herbalife and others relating to that investigation as well as trading in Herbalife shares and allegations about our business practices. We are cooperating with these requests for information, remain confident in the integrity of our business practices, and are hopeful Ackman’s long-term campaign of distortion will be found to be illegal.”
This news is still developing, and any updates will be added as they happen.
Originally posted in i4u News