December 3, 2013 |
Herbalife Ltd. said a Belgian appeals court has overturned a lower court finding that the company operated an unlawful pyramid scheme. Critics of the Los Angeles nutritional products company had said the 2011 ruling in Belgium was evidence that the company improperly rewards its independent sales people for recruiting others into the business. Herbalife said in a statement that a Belgian appeals court ruled that the company's sales model "is in full compliance with the law. " PHOTOS: Top 10 Southern California companies "Herbalife always believed that the first judgment contained factual errors and was based on misinterpretations of its direct-selling sales method, and was confident that the original judgment would be overturned on appeal," Herbalife said in a statement Tuesday.
October 28, 2013 |
Nutritional products maker Herbalife Ltd. reported a nearly 27% jump in third-quarter profit amid double-digit sales growth in China and Latin America. The Los Angeles company reported net income of $142 million, or $1.32 a share, for the three months ended Sept. 30. That compares with $111.9 million, or 98 cents, a year earlier. Excluding expenses for non-recurring items, the company earned $1.41 a share, well above analysts' expectations of $1.14 a share. Sales grew 19.3% to $1.2 billion.
October 23, 2013 |
It looks like former Los Angeles Mayor Antonio Villaraigosa, who we heard was intent on keeping his political options open when he left City Hall this summer -- a run for governor was mentioned -- has instead decided to go for the money. The question is how many conflicts of interest this onetime rising Democratic star can juggle at once. Villaraigosa's newest deal is an advisory contract with the big public relations firm Edelman. That's curious, because Edelman also handles PR for hedge fund manager Bill Ackman, who has been on a months-long campaign to bring down the Los Angeles multilevel marketing firm Herbalife Ltd. -- where Villaraigosa is also a paid advisor.
October 17, 2013 |
A group of black and Latino community leaders is calling on California Atty. Gen. Kamala D. Harris to launch an investigation into nutritional products maker Herbalife Ltd., accusing the Los Angeles company of being a pyramid scheme. The activists -- including members of the League of United Latin American Citizens, Southern Christian Leadership Conference, Congress of Racial Equality and more -- plan to make their case in a news conference in downtown Los Angeles on Friday. The group alleged in a release that Herbalife uses deceptive marketing and predatory business practices to lure minorities with “extraordinary rags to riches stories even though the vast majority of the participants caught up in the scheme lose money and quit within a year.” Herbalife officials have said that at least 60% of their distributors are Latino.
October 15, 2013 |
This has been a good year for Mary Jo White, the new chair of the Securities and Exchange Commission, and not such a good one for Apple Inc. Chief Executive Tim Cook and New York hedge fund manager Bill Ackman. That's the view of Worth magazine, which pegged White as the most powerful person in finance, ahead of President Obama and Fed Chairman Ben S. Bernanke. The magazine this week released an updated list of the 100 most influential people in finance, introducing White at the top of the list, while Cook and Ackman got the ax. Bill Gates, Peter Thiel and Warren Buffett fell, but stayed in Worth's top 100. STOCK SPOTLIGHT: Profiles of Southern California public companies “This year's list is compelling in many ways, starting with the fact that a woman, SEC Chair Mary Jo White, holds the top spot for the first time,” said Worth's editor, Richard Bradley.
October 3, 2013 |
Activist hedge fund manager Bill Ackman said he has closed nearly half of his short position on the stock of Los Angeles nutritional products company Herbalife Ltd. but said he still firmly believes it is a pyramid scheme that will attract regulatory action. In December 2012, Ackman told investors that he believed Herbalife operated a pyramid scheme and would ultimately be shut down by regulators. He announced that he had taken a $1-billion short against the company's stock, a move that would allow his fund to profit if Herbalife shares fell.