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

The Importance of Stability in the Evolving Hedge Fund Administration Market

Oct 5 2015 | 8:17pm ET

Hedge fund administration has evolved from simple record keeping to an integral,...


Citadel's Griffin Reaches Settlement in Contentious Divorce

Oct 8 2015 | 10:14pm ET

Billionaire hedge fund manager Ken Griffin and his wife have settled a long-running...

Guest Contributor

Hedge Fund Marketing To Independent RIA Firms

Sep 30 2015 | 1:56pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth Inc. explains...


Editor's Note