By David Rauf
Wall Street and consumer groups failed to stop the nutritional giant, but industry still facing challenges raised in settlement.
“They took a more aggressive approach with Herbalife and Vemma, and I don’t think they got the outcomes they wanted.”
— Kevin Thompson, attorney, Thompson Burton PLLC
“Companies would be wise to have data readily available that shows that they meet at least some of the provisions of the Herbalife consent decree. For example, the ability to show what percentage of sales are made to end consumers as opposed to distributors.”
—William Miller, shareholder, Buchalter
“... any companies or operations that choose not to cooperate can be identified to the government for further action, and to the public as those who will not cooperate.”
—Joseph Mariano, president, DSA
One year ago, hedge fund investor Bill Ackman officially turned the page on one of Wall Street’s most bitter and high-profile activist investor battles when he called it quits on a $1 billion gamble against Herbalife Nutrition Ltd. (HLF—NYSE).
Ackman’s bet backfired. As Herbalife’s stock rallied, the company remained a giant in the direct selling industry and his allegations that the nutrition supplement maker was running an illegal pyramid scheme never panned out.
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