Search Results for: ackman

A federal judge has dismissed a lawsuit accusing Herbalife Ltd. and its chief executive officer of misrepresenting the weight-loss and nutritional products maker's sales practices as legitimate when the company was "at its core" a pyramid scheme.

According to an article from Fortune, federal investigators are looking into whether people, including some hired by William Ackman, made false statements about the Herbalife’s business model to regulators.

Herbalife announced it received today a Civil Investigative Demand (CID) from the Federal Trade Commission (FTC).

The direct-selling industry has had plenty of turmoil over the past year. There have been management changes and a federal investigation of alleged overseas bribery at Avon, while Herbalife has come under attack from hedge-fund manager William Ackman, who accuses it of being a pyramid scheme, allegations the company denies.

Corporate raider William Ackman has attacked a venerable direct selling company in Herbalife. Is this a threat to the entire direct sales industry?