Herbalife Faces Another Probe

Apr 21 2014 | 3:30pm ET

Pershing Square Capital Management’s allegations that Herbalife is a pyramid scheme will get another look, this time by Illinois’ attorney general.

Lisa Madigan launched a probe of the nutritional supplements company, her press secretary said Thursday. Madigan’s is at least the fourth investigation of Herbalife to emerge in the past month, following those led by the Federal Trade Commission, Justice Department and New York attorney general.

Pershing Square accused Herbalife of being a pyramid scheme more than a year ago, opening a $1 billion short against the company. The firm and its founder have spent the interim period attempting to convince regulators to look into their claims, efforts that have only begun to bear fruit recently.

Madigan’s office was urged to look into the company by civil rights groups, who, echoing Ackman, said Herbalife is a pyramid scheme targeted at minorities.

“We look forward to working with the Illinois Attorney General’s office to resolve the consumer complaints it has received,” Los Angeles-based Herbalife said.


In Depth

Steinbrugge: Will Hedge Funds Help or Hurt During the Next Market Correction?

Sep 7 2016 | 11:55pm ET

Most investors have become accustomed to quick rebounds when markets correct, but...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...