logo
  Join        Login             Stock Quote

Herbalife (HLF) Says Unaware Of Any Regulatory Investigation

 February 04, 2013 02:02 PM
 


(By Balachander) Herbalife Ltd. (NYSE: HLF) has responded to a report that the distributor of nutritional supplements is the subject of a law-enforcement probe.

"Other than the voluntary dialogue with regulators, which we communicated on our January investor day, we are unaware of any other regulatory interest and/or investigation," Herbalife said.

The company said it is demanding a correction from the New York Post, which reported that Herbalife is the subject of ‘pending' probe by the Federal Trade Commission (FTC).

[Related -Herbalife Ltd. (HLF) Q3 Earnings Preview: What To Watch?]

The FTC, responding to a Freedom of Information Act request from the New York Post, released 192 complaints against the company over the past seven years.

Some contained a note referring to a "pending law enforcement action,", the Post reported.

"For a direct selling company of our size, we have had a relatively low number of complaints to the FTC," Herbalife said. "However, we take every one of them seriously and stand by our record of doing right by our distributors and all consumers of our products."

Late last year, Pershing Square's Bill Ackman had said the company is a pyramid scheme and disclosed he is shorting the stock. The company said it has been informed that Ackman has shorted its stock for the past 7 to 9 months and that the stock dropped almost 15 percent following Ackman's announcement.

[Related -How To Invest Like Bill Ackman]

Last month, Daniel Loeb's Third Point disclosed a 8 percent stake in the nutritional supplements company. Activist investor Loeb acquired 8.9 million HLF shares or 8.24 percent.

The stock, which has been trading in the 52-week range of $24.24 to $73.00, shed 2.31 percent to trade at $34.26 at 2.03 pm ET on Monday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageThree Stocks to Consider in a Hot Sector

Healthcare stocks have performed handsomely in August, at least so far anyway. For instance, First Trust read on...

article imageOmniVision Technologies, Inc. (OVTI) Q1 Earnings Preview: Hard to See Sales Up, EPS Down

OmniVision Technologies, Inc. (NASDAQ:OVTI) will release its financial results for the first quarter of read on...

article imageAvago Technologies Ltd. (AVGO) Q3 Earnings Preview: Going For 20 in a Row

Avago Technologies Ltd. (NASDAQ:AVGO) will report its third quarter fiscal year 2014 financial results and read on...

article imageLevel 3 Communications, Inc. (LVLT): A Good Time To Buy Says Macquarie

On a day Wall Street is struggling to advance, Level 3 Communications, Inc. (NYSE:LVLT) is having no such read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.