UPDATE: Herbalife (HLF) Unlikely Subject of FTC Announcement - Pivotal

(Updated - May 18, 2015 1:36 PM EDT)

Herbalife (NYSE: HLF) isn't likely to be the subject of tomorrow's FTC announcement, according to Pivotal Research analyst Tim Ramey.

"We note that HLF shares promptly sold off on elevated volume, but we think it highly unlikely that this pertains to HLF, " Ramey said in a research note. "We don’t see much overlap there (VA and SC, Wise Giving Alliance) with the HLF matter, so we suspect that this relates to something else."

"And in any case, while we do believe there will be a similar notice at some point regarding HLF, we believe that it will not contain the word 'fraud' in the release, nor will it have sweeping implications for HLF’s business model. We continue to look forward to “FTC day” as a day where the MLM business model will be effectively be vindicated by the FTC," added the analyst.

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