Friday , 17 August 2018

Home » RESOURCES » INVESTING » FTC charges Herbalife $200 million fine in pyramid-scheme ruling

FTC charges Herbalife $200 million fine in pyramid-scheme ruling

Shares of Herbalife Ltd. soared more than 9%, nearing a two-year high on Friday, after the company confirmed a ruling by the Federal Trade Commission that it can continue to operate as a direct selling company. The company has agreed to pay a $200 million fine and restructure its business, but the FTC did not directly refer to Herbalife as a pyramid scheme.The ruling, first reported by The Wall Street Journal, ends a two-year investigation by the FTC that started after billionaire investor Bill Ackman revealed a large short stake in the company and claimed it was a pyramid scheme. In light of the ruling, Ackman rival and fellow billionaire investor Carl Icahn, who has long supported Herbalife, said the company raised his ownership limit to 34.99% from 25%. Shares of Herbalife were on track to open around $64.62 on Friday, which would put them on track for their highest closing price since July 28, 2014, when the stock closed at $67.48.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.

FTC charges Herbalife $200 million fine in pyramid-scheme ruling Reviewed by on . Shares of Herbalife Ltd. soared more than 9%, nearing a two-year high on Friday, after the company confirmed a ruling by the Federal Trade Commission that it ca Shares of Herbalife Ltd. soared more than 9%, nearing a two-year high on Friday, after the company confirmed a ruling by the Federal Trade Commission that it ca Rating:
scroll to top