Sunday, 25 September 2016
Last updated 1 day ago
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.