Union Calls on NJ AG to Investigate Herbalife (HLF)

UNITE HERE Local 54 President Bob McDevitt sent a letter to New Jersey’s Acting Attorney General John Hoffman today calling for an investigation into Herbalife (NYSE: HLF).

The letter reads, in part,

We are also concerned about the potential for Herbalife to prey on unemployed or desperate casino employees in the Atlantic City area in the wake of the economic downturn. Herbalife’s largest shareholder is Carl Icahn. Icahn was part of decisions to close three casinos in Atlantic City (Sands, Atlantic Club and Trump Plaza). Additionally, Icahn has used the bankruptcy process to strip workers at the Taj Mahal casino of their health insurance and retirement benefits. We are concerned that with the massive increase in unemployment and the increases in expenses for workers at the Taj Mahal as a result of Icahn’s cuts that Atlantic County residents may turn to get-rich-quick schemes like Herbalife, and consequently, get taken advantage of by Carl Icahn again.

“We were shocked to discover that Carl Icahn was the largest shareholder at Herbalife. Is there no level to which Icahn won’t sink to bully and exploit hard working men and women?” said Bob McDevitt, President of UNITE HERE Local 54.

“In addition to asking the AG to investigate Herbalife, we are taking two other steps to protect our members. First, we are going to be surveying our members about their experiences with Herbalife, and second, I am personally going to be calling other leaders of our union throughout the country and ask them to contact their AGs and survey their members as well,” added McDevitt.

"We have begun to reach out to our members about their experiences with Herbalife. We want to make sure they aren't being taken advantage of, and we will document any abuses we find," said Karen Kent, President of UNITE HERE Local 1 in Chicago.

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