New York - Report: SEC To Investigate Herbalife |
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New York - Published reports say the Securities and Exchange Commission has launched a probe into nutrition and weight loss company Herbalife Ltd., whose business model has come under attack by a prominent investor.
The Wall Street Journal on Wednesday cited an unnamed person close to the probe.
The SEC and Herbalife both declined to comment.
Los Angeles-based Herbalife has been grappling in recent weeks with questions about its business model, which uses a network of distributors to sell its products.
Last month Pershing Square Capital Management’s William Ackman said he was shorting Herbalife stock after concluding the company was a pyramid scheme.
In contrast, hedge fund manager Dan Loeb disclosed Wednesday the purchase of 8.9 million Herbalife shares.
Herbalife is scheduled to hold an analyst meeting Thursday to address investor questions.
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Read Comments (7) — Post Yours »
1
Jan 09, 2013 at 06:33 PM bored Says:Report as Inappropriate
Why not investigate tamiflu first? that's a bigger scam.
2
Jan 09, 2013 at 10:24 PM Supermom Says:Report as Inappropriate
“ Why not investigate tamiflu first? that's a bigger scam. ”
Because the govt has a hand in Big Pharma's profits versus herbalife is privately owned.
3
Jan 09, 2013 at 10:59 PM Anonymous Says:Report as Inappropriate
“ Why not investigate tamiflu first? that's a bigger scam. ”
Y is tamiflu a scam it works wonders if its used within the 1st 24 hrs after u feel sick
4
Jan 10, 2013 at 08:34 AM Reb Yid Says:Report as Inappropriate
“ Because the govt has a hand in Big Pharma's profits versus herbalife is privately owned. ”
First of all, Hebalife is a publicly traded company. Second, how does the gov't "have a hand in Big Pharma's profits"? On the contrary--the gov't pays for much of Big Pharma's products through health care programs, so they'd actually have more of an impetus to investigate them (and they do, quite frequently).
5
Jan 10, 2013 at 10:20 AM JoshB Says:Report as Inappropriate
Why are we frum people so quick to fall for conspiracy theories against the established medical community? They are not trying to suppress alternative medicine, rather there are usually no studies that indicate the effectiveness of the vast majority of "alternative cures".
6
Jan 10, 2013 at 11:06 AM bored Says:Report as Inappropriate
“ Y is tamiflu a scam it works wonders if its used within the 1st 24 hrs after u feel sick ”
Placebos always work wonders. Well at least 50 percent of the time. It's a scam because there were never studies performed by any medical associations, only published claims by it's manufacturer. Other governments and health agencies are aware of this. Just not ours. As for why the government would waste money on this, I guess that other poster doesn't understand lobby commities & kickbacks.
7
Jan 10, 2013 at 08:15 PM newtransplant Says:Report as Inappropriate
Of course it is a pyramid scheme! I was approached about 15/20 years ago to sell it and to get others to sell and it sounded exactly like a pyramid scheme! In addition I wouldn't sell something I didn't believe in......