Search

Editors

Harry Cassin Publisher and Editor

Andy Spalding Senior Editor

Jessica Tillipman Senior Editor

Richard L. Cassin Editor at Large

Elizabeth K. Spahn Editor Emeritus 

Cody Worthington Contributing Editor

Julie DiMauro Contributing Editor

Thomas Fox Contributing Editor

Marc Alain Bohn Contributing Editor

Bill Waite Contributing Editor

Shruti J. Shah Contributing Editor

Russell A. Stamets Contributing Editor

Richard Bistrong Contributing Editor 

Eric Carlson Contributing Editor

Bill Steinman Contributing Editor

Aarti Maharaj Contributing Editor


FCPA Blog Daily News

« Sungyong Kang: Can Korea ever clean up the Chaebol Republic? | Main | Brazil Car Wash judge killed in plane crash »
Monday
Jan232017

Herbalife discloses China FCPA investigation

Dietary supplement maker Herbalife said in a securities filing Friday that the SEC has requested documents and other information about the company's anti-corruption compliance in China.

Herbalife said it has discussed the SEC's investigation with the DOJ.

The company said in its Form 8-K (pdf) it is "cooperating with the SEC's investigation and cannot predict the eventual scope, duration or outcome of the matter at this time."

Activist investor Carl Icahn owns nearly 25 percent of Herbalife. His stake is worth about $1.2 billion.

Herbalife Ltd. is incorporated in the Cayman Islands and based in Los Angeles.

In July, Herbalife settled a Federal Trade Commission complaint by agreeing to change its multi-level marketing approach and refund $200 million to distributors.

The FTC complaint said Herbalife misled distributors with deceptive earnings projections. The complaint alleged that Herbalife's compensation structure depended on recruiting other distributors instead of selling the company's products.

Herbalife disputed the FTC findings but said it settled the action to avoid the cost and distraction of litigation.

___

Richard L. Cassin is the publisher and editor of the FCPA Blog.