34 Facts About Herbalife

Herbalife was founded by Mark R Hughes in 1980, and it employs an estimated 9,900 people worldwide.

Herbalife operates in 95 countries through a network of approximately 4.

Herbalife agreed to "fundamentally restructure" its business, in the US but not worldwide, and pay a $200 million fine as part of a 2016 settlement with the US Federal Trade Commission following these accusations.

Herbalife's first product was a protein shake designed to help people manage their weight.

Herbalife structured his company using a direct-selling, multi-level marketing model.

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In 1982, Herbalife received complaints from the Food and Drug Administration for claims made about certain products and the inclusion of mandrake, poke root, and 'food grade' linseed oil in another.

Herbalife suffered as a result of the lawsuit and was forced to lay off nearly 800 employees by May 1985.

Herbalife settled the suit for $850,000 without admitting wrongdoing.

In 1986, Herbalife became a publicly-traded company on the NASDAQ and rebranded itself as Herbalife International.

Herbalife launched a line of personal care products in 1995 which included fragrances and facial cleansing products.

Herbalife was sued in civil court by two former distributors in 1997 for withholding earned income.

In July 2016, Herbalife agreed to change its business model and pay $200 million to its distributors in a settlement with the FTC.

Herbalife announced in November 2016 that Chief Operating Officer Richard Goudis would take over the position of CEO in June 2017 and Johnson would transition to executive chairman.

Herbalife announced that its shareholders had approved a two-for-one stock split.

In January 2019, Herbalife announced that it was replacing Goudis after learning of comments he had made before taking over as CEO that was “contrary to the company's expense-related policies and business practices” and inconsistent with the company's standards and culture.

Herbalife's products are produced at the company's five manufacturing facilities in the US and China as well as third-party manufacturing partners.

In 2008, Herbalife was sued after laboratory tests indicated that levels of lead in several Herbalife products were in excess of California state law and could lead to liver problems over an extended period of time.

Herbalife commissioned its own lab testing and found that those products did not contain high enough amounts of lead to require special labeling.

Herbalife Nutrition is required to have its practices monitored by an outside party for seven years to ensure compliance.

Herbalife was accused of selling products containing toxic ingredients such as quaqua, comfrey, and kraska.

Herbalife stated they were cooperating fully with Spanish authorities, and after investigation, the agency determined no action was required and removed the alert.

In November 2011, the Commercial Court in Brussels, Belgium ruled that Herbalife was an illegal pyramid scheme.

On December 20,2012, Bill Ackman presented a series of arguments outlining why his firm believed that Herbalife operated a "sophisticated pyramid scheme" and contended that its stock would hit zero.

In November 2017, Ackman closed out his short position after Herbalife shares increased by 51 percent over the year, and replaced it with a less aggressive put option.

In March 2018, The Wall Street Journal reported that Ackman had "largely exited" his bet against the company, while others reported that the bet against Herbalife had cost his company hundreds of millions of dollars and damaged the confidence of investors in his hedge fund.

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We are confident that Herbalife is in compliance with all applicable laws and regulations.

In July 2016, Herbalife agreed to change its business model and pay $200 million in a settlement with the FTC.

Lawsuit alleged that Herbalife deceived consumers into believing they could earn substantial income from the business opportunity or big money from the retail sale of the company's products.

On September 27,2019, the SEC announced that Herbalife has agreed to pay $20 million to settle charges of making false and misleading statements about its business model and operations in China between 2012 and 2018.

Herbalife did not admit or deny the charges but agreed to the settlement terms.

Herbalife Nutrition has sponsored France's national volleyball team and the Major League Soccer club LA Galaxy since 2007 and has sponsored Cristiano Ronaldo since 2013.

Herbalife has sponsored the basketball club Herbalife Gran Canaria since 2012.

In July 2020, Herbalife sponsored the Guangzhou Charge of the Overwatch League.

Hilary Rosen, a Democratic lobbyist and an adviser to Herbalife, questioned Tribeca's credibility after claiming that the film was "bought and paid" for by Ackman "to make good on his stock bet".