Herbalife Lawsuit: Sales Method Under Investigation

January 8, 2013

Seeger Weiss lawyers are investigating claims that Herbalife is operating an enormous “pyramid scheme.” Herbalife promises that distributors of its nutrition and weight management products can “earn what you’re worth,” while “spend[ing] more time with friends and family” and “working from home.” But, as has been widely reported, acclaimed investor William Ackman and founder and CEO of Pershing Square Management Capital, LP has stated that distributors of Herbalife's products generate the majority of their income by recruiting new salespeople, not by selling products, and only a minimal number of distributors actually achieve income as depicted in distributor presentations.

As reported, Ackman says the Herbalife operation has resulted in “millions of low income people around the world that have gotten their hopes up in an opportunity” to get rich. “They've been duped …every day, new distributors are being attracted into this scheme ….”

In 2011, the Commercial Court in Belgium ruled that Herbalife’s sales method is a pyramid scheme. The court ordered Herbalife to end its sales practices in Belgium and to pay a penalty of €5,000 for every violation. Herbalife filed an appeal in the case.

Seeger Weiss is conducting its own investigation of these allegations. If you are an Herbalife independent distributor and believe that you have been a victim of illegal practices by Herbalife, please contact us to discuss legal remedies that may be available to you. All initial attorney consultations are free of charge.

Seeger Weiss LLP

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