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Herbalife (HLF) Slammed; FTC Opens Probe as Multitude of Complaints Released

February 4, 2013 6:46 AM EST Send to a Friend
Herbalife (NYSE: HLF) has been a controversial stock over the last few weeks as Pershing Square's Bill Ackman as more than publicly proclaimed his disdain for the stock. Ackman might get another reason to smile Monday as regulatory officials are taking a harder look at the company.

According to the NY Post on Monday, the Federal Trade Commission (FTC) may be conducting a probe into Herbalife's operations. The news came following an information request from the Post under the Freedom of Information Law.

The FTC said there have been about 192 complaints filed against Herbalife over the last few years. Though some information was redacted, the FTC released 729 total pages of complaints. Some of the issues included false promises made by Herbalife, difficulty for distributors to collect income, and distributors getting refunds, among others.

Though having rebounded since the Ackman attack in December, shares are back down over 17 percent to a close of $35.07 last Friday. Activist investor Carl Icahn has supposedly taken the other side of the trade, along with Third Point's Dan Loeb. The positions have made Herbalife one of the most-talked about stocks among day traders, having wild upswings and downswings almost daily.

Shares are down nearly 10 percent in early trading. For more on the ongoing Herbalife saga, click here.




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Hedge Funds, Hot Corp. News, Hot List, Litigation, Momentum Movers, Trader Talk

Related Entities

Daniel Loeb, Carl Icahn, William Ackman, Pershing Square Capital, Third Point LLC

Comments

Probe or not Probe
Luis on 2013-02-04 16:58:00
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No news, no facts, an erroneous opinion... malicious or ignorant...? Either way...

ftc probe 2
david on 2013-02-04 09:53:58
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the exact phrase......"According to the NY Post on Monday, the Federal Trade Commission (FTC) may be conducting a probe"
may be?

FTC probe
david on 2013-02-04 09:50:18
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NYTimes, "may have opened" is not quite the same.
Report your own news, facts, not oppinion


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