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: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.