Federal trade regulators are sending checks to 350,000 Herbalife distributors who lost money by trying to sell the company’s weight-loss shakes, bars and other supplements. The overwhelming majority of Herbalife distributors earned little or no money, the regulators concluded after a two-year investigation. Regulators said they used Herbalife records to estimate which distributors in the United States lost the most money. The agency’s investigation began in March 2014 after billionaire investor William Ackman claimed that Herbalife was operating a pyramid scheme. Under the settlement, Herbalife must stop its rags-to-riches promotional pitches.
Source:Los Angeles Times January 11, 2017 00:48 UTC