Investors File Lawsuit Against Herbalife

Mark Melin

Published onApril 16, 2014

Updated on May 13, 2021

The battle to bring down Herbalife Ltd. (NYSE:HLF) just got new life, but this time activist hedge fund manager Bill Ackman wasn’t directly involved.

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Lawsuit claims Herbalife failed to disclose risk

A group of investors have filed a class action lawsuit against the nutritional supplemental company for its sales practices. The investor suit, filed in Los Angeles federal district court, claims the company failed to disclose its widely-known multilevel sales operation was a “pyramid scheme” and the company was under investigation by the FBI. The suit, filed by investor Abdul Awad, seeks class action status to represent all investors who bought Herbalife Ltd. (NYSE:HLF)...

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Mark Melin

Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.

Investors File Lawsuit Against Herbalife

Lawsuit claims Herbalife failed to disclose risk

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