Pershing Square Releases 10th in a Series of Videos Showing Herbalife’s False and Misleading Claims Continue

Video Demonstrates Aggressive and Deceptive Recruiting Practices Persist

NEW YORK--(BUSINESS WIRE)-- Pershing Square Capital Management, L.P. (“Pershing Square”) today released the 10th in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new recruits into its pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.

Herbalife claims that it has cleaned up its act in recent years but today’s video shows that the false and misleading claims that Herbalife Founder Mark Hughes made years ago, continue to be echoed by distributors today. Herbalife CEO Michael Johnson said:

“I always say to the executives, ‘go back and watch Mark [Hughes],’ because we’re not doing anything differently today than what was his original dream.”

In describing how to recruit new distributors and build an organization, Mark Hughes says:

“First thing you want to do is build wide, then you want to build deep. This is the game of Herbalife.”

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage and 86% earn $0 from the company.

A company is deemed a pyramid scheme if the participants make money primarily from recruiting rather than sales to actual customers.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.

About Pershing Square Capital Management, L.P.

Pershing Square Capital Management, L.P. ("Pershing Square"), based in New York City, is a SEC-registered investment advisor to investment funds. Pershing Square manages funds that are in the business of trading — buying and selling — securities and other financial instruments. Funds managed by Pershing Square are short the stock of Herbalife Ltd. and own put options on the company. Pershing Square may increase, decrease, dispose of, or change the size or form of its investment in Herbalife for any or no reason, at any time. Pershing Square may change its views about or its investment positions in Herbalife at any time, for any reason or no reason. Pershing Square may buy, sell, cover or otherwise change the form or substance of its Herbalife investment. Pershing Square disclaims any obligation to notify the market of any such changes. Please see the full Disclaimer appearing on website www.factsaboutherbalife.com and www.herbalifepyramidscheme.com.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160701005188/en/

Pershing Square
Fran McGill, 212 909 2455
[email protected]

Source: Pershing Square Capital Management, L.P.

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