Is Herbalife Ltd. In The Clear With The SEC? [Analysis]

As the Herbalife pyramid scheme investigation moves into its later innings, the U.S. Securities and Exchange Commission is responding “aggressively” to such schemes. Andrew Ceresney, the SEC’s director of the Division of Enforcement, in a speech in Chicago recently, outlined that protecting the retail investor is their top concern and yet he appeared to use legitimate products as a key point in defining such illegal behavior. If a company's products are a consideration in defining the legitimacy of a business model, then Herbalife might live to fight another day.