Herbalife

From Wikipedia, the free encyclopedia - View original article

Herbalife International
TypePublic
Traded asNYSEHLF
IndustryNutrition & Skin Care products
FoundedLos Angeles, California (1980 (1980))
Founder(s)Mark Hughes
HeadquartersL.A. Live
Los Angeles, California
, United States
Key peopleMichael O. Johnson (Chairman & CEO)
Des Walsh (President)
Richard P. Goudis (COO)
John DeSimone (CFO)
ProductsWeight management, nutritional supplements, personal care, sports nutrition.
RevenueIncrease US$ 4.072 billion (2012)[1]
Operating incomeIncrease US$ 661.447 million (2012)[1]
Net incomeIncrease US$ 477.190 million (2012)[1]
Total assetsIncrease US$ 1.703 billion (2012)[1]
Total equityDecrease US$ 420.755 million (2012)[1]
Employees6,200 (31 Dec 2012)[1]
Websitewww.herbalife.com
 
Jump to: navigation, search
Herbalife International
TypePublic
Traded asNYSEHLF
IndustryNutrition & Skin Care products
FoundedLos Angeles, California (1980 (1980))
Founder(s)Mark Hughes
HeadquartersL.A. Live
Los Angeles, California
, United States
Key peopleMichael O. Johnson (Chairman & CEO)
Des Walsh (President)
Richard P. Goudis (COO)
John DeSimone (CFO)
ProductsWeight management, nutritional supplements, personal care, sports nutrition.
RevenueIncrease US$ 4.072 billion (2012)[1]
Operating incomeIncrease US$ 661.447 million (2012)[1]
Net incomeIncrease US$ 477.190 million (2012)[1]
Total assetsIncrease US$ 1.703 billion (2012)[1]
Total equityDecrease US$ 420.755 million (2012)[1]
Employees6,200 (31 Dec 2012)[1]
Websitewww.herbalife.com

Coordinates: 33°51′26″N 118°17′31″W / 33.857195°N 118.291855°W / 33.857195; -118.291855

Herbalife International is a multi-level marketing company that sells nutrition, weight management and skin-care products. The company was founded in 1980, and it employs around 6,200 people worldwide. Herbalife reported net sales of US$4.072 billion in 2012, an 18% increase over 2011, and net income of $477.19 million, a 16% increase over 2011.[2] Incorporated in the Cayman Islands,[1] its corporate headquarters are in Los Angeles, California, United States.[3]

The company distributes its products in 91 countries (as of November 2013) through a network of approximately 3.2 million independent distributors,[1] some of whom earn profit on product sales and additional commission from a multi-level marketing (MLM) compensation structure.

The company has been criticized by, among others, hedge fund manager Bill Ackman of Pershing Square Capital, who claimed that Herbalife operates a "sophisticated pyramid scheme"[4][5] after taking a $1-billion short position in Herbalife stock, betting the stock price will fall to zero.[6] The company denies the allegations.[7]; As of 9th January 2014, Bill Ackman and his investors have lost almost $500 million due to the stock value rising over 50% since his short position.

History[edit]

In February 1980, Mark Hughes began selling the original Herbalife weight management product from the trunk of his car. Hughes often stated that the genesis of his product and program stemmed from the weight loss concerns of his mother Joanne, whose premature death he attributed to an eating disorder and an unhealthy approach to weight loss. His goal was to change the nutritional habits of the world.

His first product was a protein shake designed to help people manage their weight. He structured his company using a direct-selling, multi-level marketing model which attracted thousands of distributors (Herbalife Independent Distributors) who sold its products door-to-door or through word-of-mouth, without relying on commercial distribution in retail stores.

The company's slogan, "Lose Weight Now, Ask Me How," became a marketing theme for distributors, featuring heavily on badges, flyers and posters. Early methods to recruit distributors included seminars, which would feature distributors giving health and weight loss testimonials on the Herbalife products and a keynote address by Hughes. By 1982 Herbalife had reached US$2 million in sales and had expanded into Canada.

In 1985, the California Attorney General sued the company for making inflated claims about the efficacy of its products. The company settled the suit for $850,000 without admitting wrongdoing.[8] In 1986 Herbalife became a publicly traded company on the NASDAQ, and in 1996 Herbalife reached US$1 billion in annual sales.

Mark Hughes died at age 44.[9] The Los Angeles County Coroner autopsy results ruled that the entrepreneur had died of an accidental overdose of alcohol and doxepin, an anti-depressant.[10] The company continued to grow after his death and in 2002 was acquired by J.H. Whitney & Company and Golden Gate Capital for US$685 million, who took the company private again.

In April 2003, Michael O. Johnson joined Herbalife as CEO following a 17-year career with The Walt Disney Company, most recently as president of Walt Disney International.[8] On 16 December 2004, the company had an initial public offering on the NYSE of 14,500,000 common shares at $14/share. 2004 net sales were reported as $1.3 billion. In April 2005, the company celebrated its 25th anniversary with a four-day event attended by 35,000 Herbalife Independent Distributors from around the world. In August 2005, Dr. Steve Henig joined the company as Chief Scientific Officer, responsible for product research and development. In 2008, President and COO Greg Probert resigned after it was reported that he had not completed the degree requirements for the MBA he claimed on his resume.[11]

On April 9, 2013, the company's long-time auditor, KPMG, resigned after the KPMG executive who oversaw Herbalife audits admitted to providing insider information to a golfing friend about at least five companies — including Herbalife and Skechers.[12][13] The company hired PricewaterhouseCoopers as its auditor on May 21, 2013. [14]

Products[edit]

Herbalife's product range includes protein shakes, protein snacks, nutrition, energy and fitness supplements and personal care products.[15] The Formula 1 protein shake, a soy-based meal-replacement shake, is the company's number one product and was one of the first products sold by the company. The range also includes products for heart health, digestive health, skin care, and the new 24 sports line released in 2011. Some products are vegetarian, kosher, allergen free[16] or halal, and Herbalife provides testimonials and advice from health professionals as part of their product marketing.

According to the 2009 Form 10-K, many of its weight management, nutritional and personal care products are manufactured by third-party manufacturing companies, with the exception of products distributed in and sourced from China, where they have their own manufacturing facility, and several products are produced in its manufacturing facility in Lake Forest, California (renovated 2011[17]). Herbalife is currently making modifications to its recently acquired manufacturing facility in order to increase capability and capacity, and upon completion of these modifications, expect to increase self manufacturing.[18]:16 Herbalife in June 2013 announced the opening of a plant in Winston-Salem, North Carolina, in a facility previously occupied by Dell; the facility was expected to open in 2014 and employ 500.[19]

In October 2010, Herbalife held a groundbreaking ceremony in Changsha, Hunan Province, China for its botanical extraction facility for its inner and outer nutrition products. The new facility opened in early 2013.[20] The new extraction facility purchases botanicals directly from farms in Hunan province, China and other regions, performs extraction and other conversion processes and then sends these processed raw materials directly to Herbalife's manufacturing facilities in Suzhou, China and Lake Forest, California, or to its third party manufacturers throughout the world. The new extraction plant produces botanical extracts, including teas, guarana, chamomile, broccoli and bilberry, among others, for use in many of its products.[21]

Efficacy of Herbalife products for weight loss[edit]

Three clinical studies have been completed of the effect of different Herbalife products on weight loss, primarily regarding whether high-protein regimens are more effective than standard meal-replacement regimens at reducing body fat. By and large, these studies showed that while Herbalife products - like many meal-replacement shakes - helped participants lose weight, use of Herbalife's high-protein products did not generally result in more weight loss than use of standard-protein Herbalife products.

The study of Treyzon et al.[edit]

Treyzon et al. compared the weight loss and other effects of adding a protein supplement (Performance Protein Powder, Herbalife Intl., Los Angeles) to meal replacement shakes. The two study groups were given the same two meal replacement shakes (Formula 1, Herbalife Intl., Los Angeles) each day; subjects in the high-protein group were also given protein supplement. Both groups lost weight over the 12-week study period, but the two treatments showed no significant differences in their effects on the primary outcome of body weight (average of 4.19 kg for the high-protein group and 3.72 kg for the standard-protein group). Effects on body mass index, waist circumference or fat free mass were also not significantly different. Subjects on the high protein diet lost significantly more fat mass (1.01 kg, P=0.05) and also showed "significant decrease in cholesterol and LDL cholesterol."[22]

The Lee study[edit]

Lee et al. used a similar design but a differently named protein powder (ShapeWorks Formula 3, Herbalife). Lee et al. found no significant difference in the effect of added protein powder on fat mass compared with a standard Herbalife meal-replacement shake. Effects on other body weight and composition outcomes also did not differ significantly between the Herbalife shake with protein powder and the one without. However, in a subgroup analysis, among subjects with dietary compliance ≥ 70%, the high-protein treatment was more effective than the control treatment in reducing body fat.[23]

Flechtner-Mors et al.[edit]

Flechtner-Mors et al. instructed 110 obese persons to cut their daily caloric intake to 500 calories below their resting metabolic rate.

Fifty-five persons made up the high protein group and received Herbalife meal replacement shakes, Performance Protein Powder and protein bars. The other 55 made up the conventional diet group, and received diet instructions only. After 12 months, 24 subjects in the protein group had dropped out, as opposed to 12 in the conventional group. For the dropouts, weight at 3 months instead of 12 months was used for calculating the effect of treatment. Mean weight loss at 12 months was 8.96 kg (19.76 lb) in the protein (Herbalife) group and 6.41 kg (14.13 lb) in the conventional group, a difference of 2.55 kg (5.63 lb). The authors concluded that a protein-enriched diet may have advantages for the management of the adverse effects of obesity on health.[24]

The study was criticised by Busetto et al. because the interpretation of the results was complicated by the high dropout rate, and also by the provision of shakes and bars to the Protein (Herbalife) group only. When subjects receive special weight loss products, they may stick better to their diet, independent of what weight loss products are given.[25]

Media investigation of Herbalife efficacy[edit]

German media outlets in 2013 reported positive reports of product efficacy. Two articles in Bild der Frau, a women's magazine, gave high marks the Formula One weight-loss regimen when it is maintained over time.[26] Meanwhile, the editor of Freie Press, a large newspaper in Southeastern Germany, used Herbalife Formula One shakes for seven weeks as part of a special nutrition plan. She reported that she lost six pounds.[27]

Adverse effects[edit]

Some of the original Herbalife weight loss products contained the active ingredient Ma Huang or Sida cordifolia, two herbs containing ephedra, an appetite suppressant. Herbalife stopped using ephedrine in its products in 2002 after several U.S. states banned supplements containing botanical sources of ephedrine alkaloids.[28]:15[29] The U.S. Food and Drug Administration banned supplements containing ephedra in 2004.[30]

Barry Minkow[edit]

In May 2008, the now defunct Fraud Discovery Institute,[31] which claimed to be a consumer watchdog organization, reported that laboratory test results of Herbalife products showed lead levels in excess of limits established by law in California under Proposition 65.[32][33][34][35] The Fraud Discovery Institute was founded by Barry Minkow, who served seven years in jail for stock fraud,[36] and since disclosed that his company was profiting from the allegations by shorting Herbalife stock.[37] Herbalife responded stating its products met federal FDA requirements[38][39] and released independent laboratory tests it said proved the products did not exceed Proposition 65 limits.[37]

On May 10, 2008 a suit was filed on behalf of a woman who developed lead-related liver complaints that she claimed were a reaction to a combination of Herbalife products.[36][40] The suit was filed by lawyer Christopher Grell, cofounder of the Dietary Supplement Safety Committee and an associate of Barry Minkow.[36] On June 17, 2008, the suit was expanded to add distributors who had supplied the woman with the Herbalife products, with Grell launching a website to offer persons who believe they were harmed by Herbalife products the chance of redress.[41] In August 2008, Minkow retracted all accusations against Herbalife and removed any mention of the company from his web site.[42] According to court documents, Herbalife settled with Minkow for US$300,000.[43]

Herbalife and liver disease inquiries[edit]

In 2004 Israel's Health Minister began an investigation against Herbalife's products after four persons using Herbalife's products were found to have liver problems.[44]

Herbalife's products were accused of containing toxic ingredients such as Qua-qua, Kompri, and Kraska. The products were sent to the Bio-Medical Research Design LTD (B.R.D) y, to a private laboratory in the United States of America, and to Israel's Forensic research laboratory. The company issued a press release stating that the Israeli government, and scientists working with Herbalife, were unable to establish a link between the product and the eight cases of liver damage. Herbalife withdrew the product, which was only marketed in Israel.[45] Herbalife's SEC 10-Q filings state that the Israeli Ministry of Health did not establish a causal relationship between the product and liver ailments. The Israeli Ministry of Health advises individuals with compromised liver function to avoid dietary supplements.[46] In 2009, an Israeli woman sued Herbalife International and Herbalife Israel, claiming that her liver damage resulted from the use of Herbalife products.[47]

Scientific studies in 2007 by doctors at the University Hospital of Bern in Switzerland and the Liver Unit of the Hadassah-Hebrew University Medical Center in Israel found an association between consumption of Herbalife products and hepatitis.[44][48] In response, the Spanish Ministry of Health issued an alert asking for caution in consuming Herbalife products.[49] Herbalife has stated they are cooperating fully with Spanish authorities.[50]

Hospitals in Israel, Spain, Switzerland, Iceland, Argentina and the United States had reported liver damage in a number of patients, part of whom had used Herbalife products.[44][48][51][52][53][54][55][56][57][improper synthesis?] Some patients recovered after they had stopped taking the products, in others the disease continued, and two patients died. Several authors considered it plausible that Herbalife products were the cause of the observed liver disease. Herbalife employees claim there is no definitive proof that Herbalife products cause hepatotoxicity or other liver problems.[58]

In January 2009, the Scientific Committee of the Spanish Agency for Food Safety and Nutrition (AESAN) reached the same conclusion. After reviewing cases implicating Herbalife products in Spain, Switzerland, Israel, Finland, France, Italy, Iceland and Portugal, the 12-member scientific panel issued a report concluding: "The analyses of these cases and information regarding their circumstances have not allowed us to establish a causal relationship" between liver anomalies and Herbalife's dietary supplements. Rather, the panel attributed the cases to metabolic changes from overzealous and unsupervised dieting.[59] 

A July 2013 peer-reviewed study published in the World Journal of Hepatology reexamined known cases of hepatoxicity that had previously been linked to consumption of Herbalife products and concluded that using "the liver specific Council for International Organizations of Medical Sciences scale, causality was probable in 1 case, unlikely and excluded in the other cases. Thus, causality levels were much lower than hitherto proposed."[60]

Business model[edit]

Herbalife is a multi-level marketing (sometimes called MLM or network marketing) company. In addition to profits from product sales, Herbalife distributors can earn additional commissions from sales by their 'downline' distributors. Supporters of MLM contend this is a fair compensation system, while critics contend that it is similar to a pyramid scheme.[61][62] Critics also argue that the company does not make enough effort to curb abuses by individual distributors, though Herbalife has consistently denied such allegations.[63] Herbalife is a member of the Direct Selling Association in most countries in which it operates.

In its filings with the U.S. Securities and Exchange Commission (SEC), company management note problems with inappropriate business practices in the past, their subsequent long-lasting effects and the need to avoid any repetition. Company management considers the number and retention of distributors a key parameter and tracks it closely in financial reports. By January of each year, sales leaders are required to requalify. In February of each year, they remove from the rank of sales leaders those individuals who did not satisfy the sales leader qualification requirements during the preceding 12 months. For the latest 12-month requalification period ending January 2011, approximately 48.9 percent of the eligible sales leaders requalified, reflecting an improvement from 43 percent in 2009.[64] The company was cited as one of the most profitable companies in Los Angeles County.[65]

A 2004 settlement resolved a class action suit on behalf of 8,700 former and current distributors that accused the company and distributors of "essentially running a pyramid scheme." A total of $6 million was to be paid out, with defendants not admitting guilt.

In a California class action suit filed on February 17, 2005, Minton v. Herbalife International, et al., the plaintiff is "challenging the marketing practices of certain Herbalife International independent distributors and Herbalife International under various state laws prohibiting "endless chain schemes", insufficient disclosure in assisted marketing plans, unfair and deceptive business practices, and fraud and deceit".[66]

In a West Virginia class action suit filed on July 16, 2003, Mey v. Herbalife International, Inc., et al., the plaintiffs allege that some "telemarketing practices of certain Herbalife International distributors violate the Telephone Consumer Protection Act, or TCPA, and seeks to hold Herbalife International vicariously liable for the practices of these distributors. More specifically, the plaintiffs' complaint alleges that several of Herbalife International's distributors used pre-recorded telephone messages and autodialers to contact prospective customers in violation of the TCPA's prohibition of such practices". Herbalife management insisted they have meritorious defenses in both cases and that in the West Virginia case, any such distributor actions also went against Herbalife's own policies. Management also contends that any adverse legal outcomes Herbalife might suffer would not significantly affect their financial condition, particularly since they have already set aside an amount that they "believe represents the likely outcome of the resolution of these disputes".[66] The case was resolved with Herbalife and its distributors paying $7 million into a fund for class members part of the suit.[67]:42 Herbalife International did not acknowledge wrongdoing, or admit culpability for the actions of its distributors.

As of April 2008, a series of commercials featuring a large red animated fox advertising home-based business opportunities have been running on American television. The advertisements typically feature a series of testimonials from actors playing individuals who have made sums of money between US$5,000 and US$15,000 per month as a result of participating in an undescribed business program. The advertisements direct viewers to a website that allows them to purchase a "success kit". The kit also provides no information about how the business opportunity works.

These advertisements have been found to be run by independent Herbalife distributors, as a method of recruiting new 'downline' distributors.[68] While it is not illegal, critics of this type of advertising prefer advertisers to be up front about their company associations.

Sponsorships[edit]

Sports[edit]

Herbalife sponsors a number of athletes, sports teams and sporting events around the world, including:[69]

Media[edit]

In La Fea Más Bella, a Spanish-language program, a remake of "Betty la fea", the original Ugly Betty, the lead character Lety used actual Herbalife products as she underwent an onscreen "physical transformation" in six episodes of the show.[78]

Criticism[edit]

The specialists of the German Dietary Council (German: Deutsche Gesellschaft für Ernährung) concluded that the use of Herbalife products alone does not solve weight problems.[79] In independent studies made by the German magazine Konsument (Zeitschrift Ökotest 11/2003), the products of Herbalife were found to be among the most expensive "healthy eating" products.[80]

Pyramid scheme allegations[edit]

On December 3, 2013, a Belgian appeals court overturned[81] a November 2011 ruling by the Commercial Court in Brussels, Belgium that Herbalife was an illegal pyramid scheme.[82]

Herbalife responded to the original Belgium decision by stating "Herbalife believes the judgment contains factual errors and is based on misinterpretations of the law and its direct-selling sales model. Herbalife remains committed to its multi-level direct-selling sales model and is confident that, with clarifications in certain aspects of its business, there will be no doubt as to its compliance with all applicable Belgian laws."[83] The company filed an appeal on March 8, 2012.[84] In response to the ruling being overturned, Herbalife said in a statement that it welcomed "the judgment by a Belgian Appeal Court that states the company’s sales model is in full compliance with Belgian law. This judgment overturns a previous ruling by the lower court, in response to claims brought by Belgian consumer organization Test-Aankoop, that Herbalife was operating a pyramid scheme. Herbalife always believed that the first judgment contained factual errors and was based on misinterpretations of its direct-selling sales method, and was confident that the original judgment would be overturned on appeal."[85]

On May 1, 2012, a well-known short seller David Einhorn asked pointed questions about the company’s business and sales models during the Q1 earnings call, setting off suspicions that Einhorn had a short position.[86][87] These suspicions were proven correct in January 2013 when at an investor meeting Einhorn revealed that he had profited through a short position against the company. Einhorn said the short had been closed before the end of 2012.[88]

On December 20, 2012, Bill Ackman (of Pershing Square Capital) presented a series of arguments outlining why his firm believed that Herbalife operates a "sophisticated pyramid scheme".[5][7] Ackman has alleged after a year-long investigation that the majority of distributors lose money, that the chance of making the testimonial-implied headline income is approximately one in five thousand, and that the company materially overstates its distributors' retail sales and understates their recruiting rewards, to the point that he concludes it is a pyramid scheme.[89]

Ackman claimed that Herbalife distributors "primarily obtain their monetary benefits from recruitment rather than the sale of goods and services to consumers." His firm estimates that, since 1980, the scheme has led to more than $3.5 billion of total net losses suffered by those at the bottom of the Herbalife chain. He said on CNBC that millions of low income people around the world, hoping to become millionaires are being duped with this scheme and if they knew that to make hundred thousand dollars, what Herbalife calls the "millionaires team", there is a fraction of less than 1%, no one would sign up for it.[90]

According to a number of financial commentators, Ackman put on a roughly $1 billion bet against the company;[91] soon after remarks to the press the price of the stock decreased such that Ackman would have made $300 million if he had closed his short position then.[92] Ackman stated that he will donate all of his profits from the trade to charity, taking the financial incentive out of the equation.[90][93] A few months after Ackman's initial comments, billionaire investor Carl Icahn refuted Ackman's comment in a very public spat on national TV. Shortly thereafter, Carl Icahn bought a huge stake in Herbalife Intl. As Carl Icahn continued to buy up HLF shares, the stock price continued to show strength. Carl Icahn now owns 16% of Herbalife Intl. Furthermore, Investor George Soros bought up a large percentage of Herbalife, as did William Stiritz, the CEO of Post Holdings, maker of Raisin Bran.[94] The stock started 2014 above $79 a share (as of Jan. 2, 2014) and Bill Ackman acknowledged losing $400 million to $500 million on his short position.[95]

Herbalife responded to Ackman's 2012 presentation saying it "was a malicious attack on Herbalife's business model based largely on outdated, distorted and inaccurate information. Herbalife operates with the highest ethical and quality standards, and our management and our board are constantly reviewing our business practices and products. Herbalife also hires independent, outside experts to ensure our operations are in full compliance with laws and regulations. Herbalife is not an illegal pyramid scheme."[96]

Herbalife also countered that Ackman based his accusations on a misunderstanding of the company's distributor base. At an investor conference in January 2012, the company released results of a Nielsen Research International survey showing 73 percent of Herbalife distributors never intended to make money by reselling the product. Instead, they wanted to buy products at a discount for personal use.[97] To make the distinction clearer, the company announced on its June 2013 earnings call that it would begin referring to these discount buyers as "members" rather than "distributors." [98]

The New York Post, through a Freedom of Information Act request, on the 4th of February 2013, reported that HerbaLife is subject to a pending probe from the FTC. The FTC released 729 pages containing 192 complaints received over a 7-year period in regards to the New York Post FOIA request. After reviewing the now-public complaints, which the FTC put on its website, Ackman told The Post: “I have a lot more confidence in our government’s regulators than those who own the stock.” [99] The following day, the New York Post published a report that the FTC claimed that the wording the New York Post reporter interpreted to indicate that Herbalife "is the subject of a law enforcement investigation" was incorrect and said that it could not confirm, or deny, an investigation into the nutritional supplements company.[100]

Charity[edit]

The Herbalife Family Foundation was created in 1994 by Herbalife founder Mark Hughes. The Herbalife Family Foundation creates partnerships with charities to help meet the nutritional needs of children at risk. At the same time, the foundation provides funds to organizations assisting victims of natural disasters. The Herbalife Family Foundation is a global non-profit organization working in communities around the world.

See also[edit]

References[edit]

  1. ^ a b c d e f g h "Herbalife 2012 Annual Report - Form 10-K - February 19, 2013.". Ir.herbalife.com/. Retrieved 2013-04-11. 
  2. ^ "Herbalife Ltd. Announces Record Fourth Quarter 2012 and Record Full Year Results, and Raises 2013 Earnings Guidance". http://ir.herbalife.com. 19 February 2013. 
  3. ^ "Herbalife Worldwide Address List". Herbalife.com. Retrieved 2013-12-01. 
  4. ^ "Facts About Herbalife". Factsaboutherbalife.com. Retrieved 2013-12-01. 
  5. ^ a b Neate, Rupert. 21 December 2012. Herbalife CEO accused of running 'Ponzi scheme' The Guardian. Retrieved: 22 December 2012.
  6. ^ "Buy Herbalife! Ackman's Foresight Under Fire Following JCPenney (JCP) Shakeup". 
  7. ^ a b "CEO insists Herbalife is no pyramid scheme". Los Angeles Times. December 21, 2012. 
  8. ^ a b Evans, David (2004-12-08). "Nobel Prize Winner Didn't Disclose Herbalife Contract (Update1)". Bloomberg. Retrieved 2013-12-01. 
  9. ^ Copage EV. Mark R. Hughes, 44; Founded Nutrition Supplement Concern New York Times, May 23, 2000. Section B, Page 11, Column 5.
  10. ^ "CNN.com - US - Autopsy on Herbalife founder finds death caused by accidental overdose - June 17, 2000". Articles.cnn.com. 2000-06-17. Retrieved 2013-12-01. 
  11. ^ "Ethical flap forces exit of president: Herbalife executive Probert credited with company's growth.(HEALTH CARE)(Gregory Probert) | Article from Los Angeles Business Journal |". Highbeam.com. Retrieved 2 February 2011. 
  12. ^ Matt Krantz and Adam Shell (2013-11-27). "Stock shock: KPMG quits Herbalife, Skechers". Usatoday.com. Retrieved 2013-12-01. 
  13. ^ "Herbalife Auditor Resigns After Firing Partner Over Insider-Trading Allegations". FINalternatives. 2013-04-09. Retrieved 2013-12-01. 
  14. ^ "Herbalife Gets A New Auditor: The SEC Passes On PwC's Conflicts". Forbes. 2013-05-22. Retrieved 2013-12-01. 
  15. ^ "Herbalife Corporate Profile". October 2009. 
  16. ^ "Herbalife Launched CoQ10 Plus". The Street .com. 2010-10-24. Retrieved 2012-10-08. 
  17. ^ "Herbalife's Newly Renovated California Manufacturing Facility". Reuters. 2011-03-14. Retrieved 2012-10-09. 
  18. ^ "HERBALIFE LTD. Form 10-K - Annual Report, 2009". February 23, 2010. 
  19. ^ "Comatose Sneak peek inside Herbalife's Winston-Salem plant". The Business Journal. 2013-06-11. 
  20. ^ "Herbalife Changsha Extraction Plant OPen in 2013". Herbridge. 2012-12-14. 
  21. ^ "Herbalife launches botanical extraction facility in China". Nutra ingredients USA. 2010-10-18. Retrieved 2011-10-30. 
  22. ^ Treyzon, Leo; Chen, Steve; Hong, Kurt; Yan, Eric; Carpenter, Catherine L; Thames, Gail; Bowerman, Susan; Wang, He-Jing et al. (2008). "A controlled trial of protein enrichment of meal replacements for weight reduction with retention of lean body mass". Nutrition Journal 7: 23. doi:10.1186/1475-2891-7-23. PMC 2538539. PMID 18752682. 
  23. ^ Lee, K.; Lee, J.; Bae, W. K.; Choi, J. K.; Kim, H. J.; Cho, B. (2009). "Efficacy of low-calorie, partial meal replacement diet plans on weight and abdominal fat in obese subjects with metabolic syndrome: A double-blind, randomised controlled trial of two diet plans - one high in protein and one nutritionally balanced". International Journal of Clinical Practice 63 (2): 195–201. doi:10.1111/j.1742-1241.2008.01965.x. PMID 19196357. 
  24. ^ Flechtner-Mors, Marion; Boehm, Bernhard O.; Wittmann, Regina; Thoma, Ulrike; Ditschuneit, Herwig H. (2010). "Enhanced weight loss with protein-enriched meal replacements in subjects with the metabolic syndrome". Diabetes/Metabolism Research and Reviews 26 (5): 393. doi:10.1002/dmrr.1097. 
  25. ^ Busetto, Luca; Marangon, Mariangela; De Stefano, Fabio (2011). "High-protein low-carbohydrate diets: What is the rationale?". Diabetes/Metabolism Research and Reviews 27 (3): 230. doi:10.1002/dmrr.1171. 
  26. ^ http://www.bildderfrau.de/diaet-abnehmen/formula-diaet-d28786.html "Formula-Diäten wie Modi-, Slim- oder Optifast, Herbalife und BCM bestehen aus einem Pulver, das mit Wasser oder Milch angerührt wird. Die Formula-Diät ersetzt komplette Mahlzeiten und soll das Abnehmen erleichtern". 
  27. ^ "Test: Formula-Diäten - Die Wochen mit dem Shake". 6 July 2012. 
  28. ^ "HERBALIFE LTD. Form 10-K - Annual Report, 2005". March 14, 2005. 
  29. ^ Evans, D. (11 April 2002). "Herbalife, Other Ephedra Marketers Face Soaring Insurance Rates". Bloomberg L.P. 
  30. ^ "Sales of Supplements Containing Ephedrine Alkaloids (Ephedra) Prohibited". Food and Drug Administration. 
  31. ^ "Find Company Information - ZoomInfo.com". ZoomInfo Directory. Retrieved 16 November 2012. 
  32. ^ "Herbalife lead levels draw attention - Regulation - NutraIngredientsUSA - Food, Beverage & Nutrition - Publications - Decision News Media". NutraIngredientsUSA. 19 May 2008. Retrieved 2 February 2011. 
  33. ^ "Second, FDA Registered, Independent Lab affirms Higher Lead Levels in Herbalife Product, reports Fraud Discovery Institute". Eworldwire. 2010-04-20. Retrieved 2013-12-01. 
  34. ^ "Children's Herbalife Products contain Materially Excessive Lead Levels affirmed in New Lab Results, Expert reports to Fraud Discovery Institute". Eworldwire. 2010-04-20. Retrieved 2013-12-01. 
  35. ^ "CARE Program USA: Online Newsroom courtesy EWORLDWIRE". Eworldwire.com. 2003-11-05. Retrieved 2013-12-01. 
  36. ^ a b c Deborah Crowe (June 10, 2008). "Herbalife Sued Over Product Safety". Los Angeles Business Journal. Archived from the original on June 17, 2008. 
  37. ^ a b [1][dead link]
  38. ^ "Group Says 6 Dietary Supplements Contain Dangerous Levels of Lead - Health News | Current Health News | Medical News". FOXNews.com. Retrieved 2011-10-30. 
  39. ^ [2][dead link]
  40. ^ "Herbalife Sued for Negligence and Fraud by Victim". Prnewswire.com. Retrieved 2011-10-30. 
  41. ^ [3][dead link]
  42. ^ "Reuters.com". Reuters.com. 22 August 2008. Retrieved 2011-10-30. 
  43. ^ "Why Did Herbalife Pay Felon Barry Minkow $300,000?: Greenberg". CNBC. 2 May 2012. Retrieved 26 Apr 2013. 
  44. ^ a b c Elinav, E; Pinsker, G; Safadi, R; Pappo, O; Bromberg, M; Anis, E; Keinan-Boker, L; Broide, E et al. (2007). "Association between consumption of Herbalife nutritional supplements and acute hepatotoxicity". Journal of hepatology 47 (4): 514–20. doi:10.1016/j.jhep.2007.06.016. PMID 17692424. 
  45. ^ [4][dead link]
  46. ^ "HERBALIFE LTD. - 10-Q Quarterly Report - 03/31/2005". Getfilings.com. Retrieved 2011-10-30. 
  47. ^ Linder, Ronny (2011-06-24). "Israeli woman sues Herbalife, claims products caused liver disease - Haaretz Daily Newspaper | Israel News". Haaretz.com. Retrieved 2011-10-30. 
  48. ^ a b Schoepfer, AM; Engel, A; Fattinger, K; Marbet, UA; Criblez, D; Reichen, J; Zimmermann, A; Oneta, CM (2007). "Herbal does not mean innocuous: Ten cases of severe hepatotoxicity associated with dietary supplements from Herbalife products". Journal of hepatology 47 (4): 521–6. doi:10.1016/j.jhep.2007.06.014. PMID 17692989. 
  49. ^ "Spanish Ministry of Health issues precaution on Herbalife brand". Today.reuters.com. 9 February 2009. Retrieved 2 February 2011. 
  50. ^ There's been no proven link to liver problems.Herbalife Responds to Spain's Ministry of Health Alert
  51. ^ Manso, Gloria; López-Rivas, Laureano; Salgueiro, M. Esther; Duque, Jose M.; Jimeno, Francisco J.; Andrade, Raúl J.; Lucena, M. Isabel (2011). "Continuous reporting of new cases in Spain supports the relationship between Herbalife® products and liver injury". Pharmacoepidemiology and Drug Safety 20 (10): 1080–7. doi:10.1002/pds.2180. PMID 21751292. 
  52. ^ Chen, Gary C; Ramanathan, VS; Law, D; Funchain, P; Chen, GC; French, S; Shlopov, B; Eysselein, V et al. (2010). "Acute liver injury induced by weight-loss herbal supplements". World Journal of Hepatology 2 (11): 410–5. doi:10.4254/wjh.v2.i11.410. PMC 3004035. PMID 21173910. 
  53. ^ Jóhannsson, M; Ormarsdóttir, S; Olafsson, S (2010). "Hepatotoxicity associated with the use of Herbalife". Laeknabladid 96 (3): 167–72. PMID 20197595. 
  54. ^ Stickel, F; Droz, S; Patsenker, E; Bögli-Stuber, K; Aebi, B; Leib, SL (2009). "Severe hepatotoxicity following ingestion of Herbalife nutritional supplements contaminated with Bacillus subtilis". Journal of hepatology 50 (1): 111–7. doi:10.1016/j.jhep.2008.08.017. PMID 19010564. 
  55. ^ "[Toxic hepatitis by consumption Herbalife products a case report]". Acta Gastroenterol. Latinoam. 38 (4): 274–7. December 2008. PMID 19157382. 
  56. ^ Manso, Gloria; López-Rivas, Laureano; Duque, José María; Salgueiro, Esther (2008). "Spanish reports of hepatotoxicity associated with Herbalife® products". Journal of Hepatology 49 (2): 289–90. doi:10.1016/j.jhep.2008.05.007. 
  57. ^ Duque, JM; Ferreiro, J; Salgueiro, E; Manso, G (2007). "Hepatotoxicity associated with the consumption of herbal slimming products". Medicina clinica 128 (6): 238–9. PMID 17335732. 
  58. ^ Appelhans, Kristy; Smith, C; Bejar, E; Henig, YS (2011). "Revisiting acute liver injury associated with herbalife products". World Journal of Hepatology 3 (10): 275–7. doi:10.4254/wjh.v3.i10.275. PMC 3208182. PMID 22059112. 
  59. ^ "AESAN Evaluation" (in (Spanish)). Aesan.msc.es. Retrieved 2013-12-01. 
  60. ^ Teschke, R; Frenzel, C; Schwarzenboeck, a; Eickhoff, A (2013). "Herbalife hepatotoxicity: Evaluation of cases with positive reexposure tests". World Journal of Hepatoxicity 5 (7): 353–363. 
  61. ^ "Herbalife Sets More Layoffs". The New York Times. 30 May 1985. 
  62. ^ "Hedge fund manager alleges Herbalife is 'pyramid scheme'". Stuart Pfeifer and Walter Hamilton, Los Angeles Times. December 20, 2012. 
  63. ^ "Statement from Nordic Herbalife Director denying toxicity of Herbalife products, pyramid marketing scheme". Icelandreview.com. 6 December 2005. Retrieved 2 February 2011. 
  64. ^ "Herbalife - Investor Relations - Press Release". Ir.herbalife.com. Retrieved 2 February 2011. 
  65. ^ "Herbalife Leads Lean, Mean Pack of Profitability | Los Angeles Business Journal". Labusinessjournal.com. 19 July 2010. Retrieved 2 February 2011. 
  66. ^ a b "Herbalife Quarterly Report to SEC, June 2006". Sec.gov. 28 January 2008. Retrieved 2 February 2011. 
  67. ^ "HERBALIFE LTD. Form 10-K - Annual Report, 2007". February 26, 2008. 
  68. ^ "At Home: The Real Deal - NewsChannel 9 WSYR". 9wsyr.com. Retrieved 2011-10-30. 
  69. ^ "Herbalife Sports Sponsorships". Herbalifesports.com. Retrieved 2 February 2011. 
  70. ^ "LA Triathlon website". Latriathlon.com. Retrieved 2 February 2011. 
  71. ^ "AYSO website". Ayso.org. Retrieved 2 February 2011. 
  72. ^ "LA Galaxy". La.galaxy.mlsnet.com. Retrieved 2 February 2011. 
  73. ^ "HerbalifeSports". Sports.herbalife.com. Retrieved 2013-12-01. 
  74. ^ "Riza Kayaalp l Wrester l Turkey". Sports.herbalife.com. 1989-10-10. Retrieved 2013-12-01. 
  75. ^ "Sponsorship Herbalife is New Official Nutrition Sponsor of Global Football Star, Cristiano Ronaldo". Daily Finance. 4 June 2013. Retrieved 7 June 2013. 
  76. ^ "Herbalife Hammarbys officiella tröjsponsor". Hammarbyfotboll.se. 2009-03-06. Retrieved 2013-12-01. 
  77. ^ "Ironman Pucón". ironmanpucon.com. Retrieved 2014-1-09. 
  78. ^ "Herbalife Transforms Lead Character in ‘La Fea mas Bella,’ Mexico's Ugly Betty" (Press release). Hispanic PR Wire. 6 December 2006. Retrieved 6 June 2011. 
  79. ^ "Das Geschäft mit den überflüssigen Pfunden" (in German). Deutsche Gesellschaft für Ernährung. Archived from the original on 2012-02-04. Retrieved 2011-09-29. "Wie alle Formula-Diäten ist auch Herbalife nicht als alleinige Maßnahme geeignet, das Gewicht langfristig zu reduzieren, denn die Anwender lernen mit diesen Produkten keine ausgewogene, fettreduzierte und kohlenhydratreiche Ernährungsweise." 
  80. ^ "Herbalife - Herbalife". Konsument.At. 2003-10-17. Retrieved 2013-12-01. 
  81. ^ "Herbalife says Belgian appeals court reversed pyramid scheme finding". Los Angeles Times. 2013-12-03. 
  82. ^ "Herbalife - Belgian Court Decision". Scribd.com. Retrieved 2013-12-01. 
  83. ^ "Herbalife statement regarding Belgian Commercial Court Ruling (NYSE:HLF)". Ir.herbalife.com. 2011-12-16. Retrieved 2013-12-01. 
  84. ^ "Herbalife 2012 Annual Report". Herbalife. 2013-02-19. 
  85. ^ "Herbalife Statement Regarding Belgian Appeal Court Ruling". 2013-12-03. 
  86. ^ "Herbalife International of America, Inc : Moderator : Brett Chapman". Files.shareholder.com. Retrieved 2013-12-01. 
  87. ^ "Herbalife faces rising Einhorn pressure". Financial Times. May 14, 2012. 
  88. ^ "Einhorn Profited on Bet Against Herbalife". The Wall Street Journal. January 23, 2013. 
  89. ^ "Bill Ackman's Herbalife Presentation". Business Insider. 2012-12-20. Retrieved 2013-12-01. 
  90. ^ a b http://www.cnbc.com/id/100331139 Video - Ackman Defends Calling Herbalife a ‘Pyramid Scheme’
  91. ^ John Hempton, "Bill Ackman enters the city of Stalingrad,", Bronte Capital, December 28, 2012
  92. ^ Felix Salmon, "What's Ackman's Herbalife game?" Reuters Blogs, December 31, 2012
  93. ^ John Carney (2012-12-20). "There's No Law Against Bill Ackman Talking His Book". Cnbc.com. Retrieved 2013-12-01. 
  94. ^ "Stiritz Boosts Herbalife Stake, Seeks Strategy Talks". Bloomberg News. 2013-11-20. 
  95. ^ "Ackman Will Take Herbalife Bet “to the End of the Earth”". Wall Street Journal. 2013-11-22. 
  96. ^ "Herbalife Statement in Response to Ackman Presentation (NYSE:HLF)". Ir.herbalife.com. 2012-12-20. Retrieved 2013-12-01. 
  97. ^ "Herbalife Investor Day Presentation". 
  98. ^ "Herbalife Earnings Call Transcript". 
  99. ^ Celarier, Michelle (2013-02-04). "Salve for shorts | New York Post". Nypost.com. Retrieved 2013-12-01. 
  100. ^ Celarier, Michelle (2013-02-05). "FTC corrects language on Herbalife | New York Post". Nypost.com. Retrieved 2013-12-01. 
Notes

External links[edit]