Pershing Square Releases Eighth 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 eighth 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.

In yesterday’s video, Pershing Square showed that many Herbalife distributors are now increasingly using social media and private webinars to deceive new recruits and to train them to do the same. Today’s video explores a series of webinars posted by Herbalife distributor Liz Almaguer in 2016.

In one webinar, Ms. Almaguer claims:

“Create an income that other people want to have … People are going to think, it’s their lucky break, only Flexx can make $10,000 a month because he’s Flexx. No. Not at all. A lot of people can and you guys know that.”

In another webinar, Ms. Almaguer shows income testimonials from 18 different distributors who claim their monthly incomes range from $300 per month to $19,078 per month. For the testimonials where disclosure was provided, ~70% of the income earned by those distributors came from recruiting activities.

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

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.

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/20160629005376/en/

Pershing Square Capital Management, L.P.
Fran McGill, 212-909-2455
[email protected]

Source: Pershing Square Capital Management, L.P.

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