Please ensure Javascript is enabled for purposes of website accessibility
December 7, 2022

Herbalife Making Moves to Become Honey Badger of Investigations

Herbalife isn't having a great time but it's fine. No really, it's fine.

First, they had to squash some rumors a few days ago with this press release:

We have no knowledge of any ongoing investigation by the DOJ or the FBI, and we have not received any formal nor informal request for information from either agency. We take our public disclosure obligations very seriously. Herbalife does not intend to make any additional comments regarding this matter unless and until there are material developments.

Got it? You'll know when they know. Until then, you don't know squat. Moving on, then this happened:

Illinois Attorney General Lisa Madigan's office is investigating nutrition and weight loss company Herbalife, her press secretary said on Thursday.

Madigan's office had been urged to look into the company months ago by civil rights groups who claimed that the company was a pyramid scheme targeting minorities. Hedge fund manager William Ackman was the first to call Herbalife a fraud and placed a $1 billion bet against the company in 2012.

The company denies the allegations.

So, naturally, they issued another press release:

We have more than 15,000 members and many more thousands of satisfied customers in Illinois.  We will continue to provide the outstanding products and services that they have come to expect from Herbalife over the past three decades. We will always support the good work of our members.

We are confident in the integrity of our longstanding business and the Company's compliance with applicable laws and regulations. We look forward to working with the Illinois Attorney General's office to resolve the consumer complaints it has received.

Scott London is probably kicking himself right now. He'd be making a killing ahead of all these investigations and subsequent Herbalife denials if he could have kept his shit under wraps just a little longer. Oh well.

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Comments are closed.

Related articles

businessman playing with army men toys

PwC Declares a Poaching War on EY

As EY continues to hammer out the details of the audit and consulting split, PwC has set its sights on adding EY partners to The New Equation. Lots of EY partners. In October, PwC Global Chairman and 2012 Going Concern Hottest Accounting Firm Leader winner Bob Moritz told the Financial Times in no uncertain terms […]

Christmas tree in the dark

Lonely Workaholics at PwC UK Will Have to Find Some Other Place to Go For Christmas

Last year, PwC UK chairman Kevin Ellis wrote a lovely advertisement article in The Telegraph letting his people know that if they have literally nothing better to do, PwC employees can spend Christmas at the office. He framed it as a kindness for those who may be lonely — or the opposite, ready to beat […]