Herbalife (HLF) FTC Settlement a 'Total Defeat' for Short Camp; Sees Massive Short Squeeze - Pivotal's Ramey

Herbalife (HLF) Has 'Levers to Pull' in Next Few Weeks - Pivotal Research

Pivotal Research reiterated a Buy rating on Herbalife (NYSE: HLF) with a price target of $90. Analyst Timothy S. Ramey doesn't believe efforts to comply with FTC oversight will do much damage to its U.S. business, and he reiterated his bullish stance. He also noted that Herbalife has "several important levers to pull in the next few weeks."

"There is no doubt that the permanent injunction, entered into by the FTC and Herbalife has challenges for the company and plenty of stern language. The company will be under three-year scrutiny by the... More

Pershing Square Says Herbalife (HLF) Changes Will Cause Pyramid to Collapse

Pershing Square Capital Management, L.P. (Pershing Square) today released the following statement:

Today, the FTC, in its complaint filed in Federal Court concluded[1]:

In sum, Defendants compensation structure incentivizes Distributors to purchase thousands of dollars of product to receive recruitingbased rewards and to recruit new participants who will do the same. This results in the overrecruitment of participants and the oversupply of Defendants products and exacerbates participants difficulty in selling Herbalife products for a profit.

Participants in a business opportunity should have some reasonable prospect of earning profits from reselling products to customers. However, most Herbalife... More

Herbalife (HLF) Off Highs with FTC News Conference Underway

Herbalife (NYSE: HLF) Off Highs with FTC News Conference Underway

"But the FTC has charged that this... More

FTC Offers Additional Commentary on Herbalife (HLF) Settlement

Herbalife International of America, Inc., Herbalife International, Inc., and Herbalife, Ltd. (NYSE: HLF) have agreed to fully restructure their U.S. business operations and pay $200 million to compensate consumers to settle Federal Trade Commission charges that the companies deceived consumers into believing they could earn substantial money selling diet, nutritional supplement, and personal care products.

In its complaint against Herbalife, the FTC also charged that the multi-level marketing company's compensation structure was unfair because it rewards distributors for recruiting others to join and purchase products in order to advance in the marketing... More

Pre-Open Stock Movers 07/15: (HLF) (RAD) (ALR) Higher; (CTYR) (ZIOP) (INFA) Lower (more...)

CytRx (NASDAQ: CYTR) 30.5% LOWER; announced that it has priced a registered public offering of an aggregate of approximately 28.6 million shares of common stock at a price to the public of $0.70 per share. Investors will also receive warrants to purchase up to an aggregate of approximately 28.6 million shares of common stock with an exercise price of $0.70... More

Herbalife (HLF) Shorts Could Rush to Cover Amid FTC Settlement, Potential for Larger Icahn Stake

Herbalife (NYSE: HLF) shares are trading strong early Friday following a settlement with the FTC.

Notably, short interest on Herbalife was at 21.68 million shares, or 25.2 percent of float, as of June 30, 2016. That could pave the way for the stock to squeeze higher... More

Carl Icahn Comments on Herbalife (HLF), FTC Settlement; Says Time for Co. to Consider Range of Opportunities

Carl Icahn offered the following commentary on Herbalife (NYSE: HLF) following news of an FTC settlement this morning:

I have always believed in Herbalifes strong fundamentals and am pleased the Board has decided to increase my ownership limit from 25% to 34.99% of the Companys outstanding shares. A significant part of my investment success is directly tied to our in-depth investment research and understanding of often complex and unique issues facing companies. One can be sure that this was the case with Herbalife where we spent considerable time and resources studying the false... More

Carl Icahn Issues Statement In Response to Herbalife's (HLF) Settlement with the FTC

Carl Icahn issued a statement in response to Herbalife's (NYSE: HLF) settlement with the FTC:

July 15, 2016

I have always believed in Herbalifes strong fundamentals and am pleased the Board has decided to increase my ownership limit from 25% to 34.99% of the Companys outstanding shares. A significant part of my investment success is directly tied to our in-depth investment research and understanding of often complex and unique issues facing companies. One can be sure that this was the case with Herbalife where we spent considerable time and resources studying the false pyramid... More

Herbalife (HLF) Grants Icahn Right to Raise Stake Up to 34.99%

With the FTC settlement, Herbalife (NYSE: HLF) announced that Carl Icahn... More

Herbalife (HLF) Enters Settlement with FTC; Board Grants Icahn Ability to Boost Stake to 34.99%

Herbalife Ltd. (NYSE: HLF) announced it has reached a settlement agreement with the Federal Trade Commission (FTC or the Commission) resolving the FTCs multi-year investigation of the Company. The terms of the settlement do not change Herbalifes business model as a direct selling company and set new standards for the industry. With the settlement agreement announced today, the FTCs investigation of Herbalife is complete.

Herbalife and the Illinois Attorney General also reached a settlement, and the Company agreed to pay $3 million as part of this separate agreement. With the conclusion of the... More

Herbalife (HLF) Off Highs as FTC Settlement Calls for Drastic Change of Business Model

Herbalife (NYSE: HLF) is coming off earlier highs as details of... More

Herbalife settles pyramid scheme case with regulator, in blow to Pershing's Ackman

By Diane Bartz and Michael Flaherty

WASHINGTON/NEW YORK (Reuters) - Herbalife Ltd agreed to pay $200 million and change the way it does business to avoid being labeled a pyramid scheme by regulators, a blow to hedge fund manager Bill Ackman who for years has been betting against the dietary supplements maker.

Shares of Herbalife jumped more than 20 percent after the settlement was made public and the Los Angeles-based company said its board had cleared the way for billionaire investor Carl Icahn to boost his stake in the company to as much as 35 percent from his current 18.3 percent.

Herbalife (HLF), FTC Enter Settlement Agreement; Calls for New Distributor Compensation Scheme

(Updated - July 15, 2016 8:20 AM EDT)

(Updated - July 15, 2016 7:54 AM EDT)

Herbalife (NYSE: HLF) shares on watch amid chatter that the FTC may have agreed to settle for $200 million or more and determine that the company is not a pyramid scheme. The company also agreed to change some of its business practices.

UPDATE - The $200 million fine will be for misrepresentation of claims, according to the WSJ.

An announcement is expected to be announced on Friday.

UPDATE 2 - The FTC issued the... More