News on Herbalife (NYSE:HLF):
5:25PM Herbalife in its 10Q discloses SEC has issued a formal investigation (HLF) 39.35 +0.65 : The co says “on September 20, 2007, the Company was orally advised by the Los Angeles Regional Office of the SEC that the SEC had issued a formal order of investigation into the timing of trading in Herbalife securities by a former mid-level employee. The Company does not believe these trades involve the Company itself. In addition, on November 1, 2007, the Company received a voluntary request for the production of documents from the staff of the Los Angeles Regional Office of the SEC regarding the extent of personal use of Herbalife products by the Company’s distributors and the Company’s related policies and procedures. The SEC has advised the Company that its inquiry should not be construed as an adverse reflection on any person, the Company or its common shares, or as an indication from the SEC or its staff that any violation of law has occurred. The Company is cooperating fully with the staff of the SEC in these matters.”
17 Feb 08 at 1:15 pm
I don’t understand…if no violation of law has ocurred whatsoever, what’s the purpose of this investigation?
Sorry if i’m being naive, but in Brazil we don’t have this kind of investigations on MLMs…it’s a shame since this herbalife business is a pyramid scheme.