Pershing Square Releases Seventh 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 seventh 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 continues to invent new methods of recruiting as old methods face public scrutiny and fall out of favor. In the past, Herbalife distributors used aggressive lead generation systems as a way to recruit new distributors. Pershing Square and others highlighted the many abuses of lead generation systems, and while they still exist, their popularity has diminished.

Now, under regulatory and public scrutiny, many Herbalife distributors have been forced to change course again. Today’s video shows how Herbalife distributors are now increasingly using social media and private webinars to deceive new recruits and train them to do the same. In this setting, distributors share the stark truth about Herbalife’s pyramid scheme:

“Duplication is so important in this business … multi-level marketing is a duplication business.”

Herbalife President’s Team member Heather Schwartz in 2016 said:

“So my income went up to $5,000 … and then it went up to $8,000 and I was like ok well how many people can I teach how to make that type of income. So as I taught people how to make that kind of income, my income went up: $15,000 a month, $18,000 a month, $23,000 a month. And my income has been over $30,000 a month for years now.”

Another distributor claims:

“If you want to make an extra $2,000, or $3,000, $4,000 … it’s up to you. That’s actually your choice.”

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/20160628005458/en/

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

Source: Pershing Square Capital Management, L.P.

You May Also Be Interested In

• Fisker (FSR) files form 10-K, sees more job cuts, reiterates going concern doubts
• AZZ, Inc. (AZZ) Announces Proposed 4M Share Offering
• Gaucho Group Holdings Inc. (VINO) Receives Nasdaq Non-compliance Notice