Sunday, August 30, 2020

"Herbalife to pay $123 million to settle China bribery charges"

"By engaging in a decade-long scheme to falsify its books and records to conceal corrupt and other improper expenditures, Herbalife misrepresented the information available to investors," Brian Rabbitt, acting assistant attorney general for the US Department of Justice's criminal division, said in a press release Friday.

This isn't the first controversy Herbalife has been involved in.

In 2016, the company paid the US Federal Trade Commission $200 million to settle claims that consumers looking to sell Herbalife's products had lost money.

In late 2012, hedge fund manager Bill Ackman accused Herbalife of being a pyramid scheme because of its multilevel marketing strategy, and famously made a failed $1 billion short bet against the company. The FTC later determined as part of the settlement that Herbalife is not a pyramid scheme.