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.
December 21, 2012 |
With its three-day stock plunge accelerating Friday, Herbalife Ltd. said it will defend itself against a hedge fund manager's accusations that the business is a “pyramid scheme” - but the company said its response won't come until next month. The Los Angeles maker of nutritional products said Friday that it will wait until the week of Jan. 7 to host an event for analysts at which it will respond to the “distorted, outdated and inaccurate information” alleged by moneyman Bill Ackman.
December 21, 2012 |
With investors punishing his company's stock for a third consecutive day, the top executive of Herbalife Ltd. sought to reassure shareholders Friday that his company is not a pyramid scheme. Working from the firm's tony headquarters in downtown Los Angeles, Herbalife chief Michael Johnson telephoned institutional investors, including fund managers at Fidelity, disputing highly publicized criticism from prominent New York hedge fund manager Bill Ackman. Johnson also assembled a team of about a dozen top company officials to prepare a point-by-point defense against Ackman's assertions that Herbalife is a "sophisticated pyramid scheme" whose independent sales associates make more money recruiting new distributors than actually selling products.
December 18, 2013 |
A year ago, activist investor Bill Ackman rocked Wall Street with a $1-billion bet that shares of Herbalife Ltd., the Los Angeles seller of weight-loss and nutrition products, would slide to zero. Herbalife was a "pyramid scheme," bound to be undone by regulators and destroyed, he told the Los Angeles Times and other media outlets Dec. 19. Herbalife shares plummeted 42% in the next five days, hitting a midday low of $24.24 on Christmas Eve. At the time, it seemed that 2013 would be difficult for Herbalife.
June 11, 1999 |
A businessman was convicted in New York City of cheating 22,000 investors out of $700 million in what prosecutors called the biggest pyramid scheme in U.S. history. Patrick Bennett and his wife sobbed after a federal jury found him guilty of 42 counts, including securities fraud and laundering more than $1 billion. The jury did not reach a verdict on 11 counts, including the most serious charge of conspiracy. Bennett, 46, was held without bail and faces at least 20 years in prison.
CALIFORNIA | LOCAL
December 7, 2002 |
A woman was sentenced to 12 years in state prison Friday and her stepfather was given five years' probation for operating an elaborate pyramid scheme that stole more than $2.5 million from working-class Latino families throughout Southern California. Joan Frederick, 30, and Felix Navarrete, 70, were found guilty in October of grand theft and operating an "endless chain scheme" for nearly two years through a telecommunications company called La Luz de Oro (or, Light of Gold).