Advocates to Meet with U.S. Regulators Over Herbalife (HLF) Monday; Will Call for Probe
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Consumer advocates are expected to meet with the U.S. FTC on Monday for an investigation into whether or not Herbalife (NYSE: HLF) is a pyramid scheme.
The NY Post reports that groups expected to attend include the National Consumers League, Hispanic Federation, the League of United Latin American Citizens (LULAC), and Consumer Action. Regulators expected to attend include Lois Greisman, head of the FTC's consumer fraud unit, and Jessica Rich, the new director of the Bureau of Consumer Protection.
Pershing Square's Bill Ackman brought the issue front and center last year when he went short $1 billion worth of Herbalife, calling the company a pyramid scheme in the process. Herbalife has been denying the allegations ever since, but the FTC has received at least six letters requesting a probe into the company's practices.
Particularly peeved is the Hispanic community. Some speculate that Herbalife has specifically targeted the demographic and might be ripping off up to
Shares are lower in early trading Friday.
The NY Post reports that groups expected to attend include the National Consumers League, Hispanic Federation, the League of United Latin American Citizens (LULAC), and Consumer Action. Regulators expected to attend include Lois Greisman, head of the FTC's consumer fraud unit, and Jessica Rich, the new director of the Bureau of Consumer Protection.
Pershing Square's Bill Ackman brought the issue front and center last year when he went short $1 billion worth of Herbalife, calling the company a pyramid scheme in the process. Herbalife has been denying the allegations ever since, but the FTC has received at least six letters requesting a probe into the company's practices.
Particularly peeved is the Hispanic community. Some speculate that Herbalife has specifically targeted the demographic and might be ripping off up to
300,000 Latinos a year,according to LULAC National Executive Director Brent Wilkes.
Shares are lower in early trading Friday.
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