Lieff Cabraser Announces Class Action Litigation Against Herbalife Ltd. - HLF
April 18 2014 - 8:00AM
Business Wire
The law firm of Lieff Cabraser Heimann & Bernstein, LLP
announces that class action litigation has been brought on behalf
of those who purchased or otherwise acquired the securities of
Herbalife Ltd. (“Herbalife” or the “Company”) (NYSE: HLF) between
May 4, 2010 and April 11, 2014, inclusive (the “Class Period”).
If you purchased or otherwise acquired Herbalife securities
during the Class Period, you may move the Court for appointment as
lead plaintiff by no later than June 13, 2014. A lead plaintiff is
a representative party who acts on behalf of other class members in
directing the litigation. Your share of any recovery in the action
will not be affected by your decision of whether to seek
appointment as lead plaintiff. You may retain Lieff Cabraser, or
other attorneys, as your counsel in the action.
Herbalife investors who wish to learn more about the action and
how to seek appointment as lead plaintiff should click here or
contact Sharon M. Lee of Lieff Cabraser toll-free at
1-800-541-7358.
Background on the Herbalife Securities
Class Litigation
Herbalife, headquartered in Los Angeles, California, is a
multilevel network marketing company that sells weight management,
nutritional supplement and personal care products.
The action alleges that throughout the Class Period, defendants
made materially false and misleading statements and/or failed to
disclose material facts regarding Herbalife’s business, operational
and compliance policies, specifically that: (i) Herbalife’s
operations were based on a pyramid scheme whereby its distributors
generated revenue by recruiting other distributors, rather than by
selling Herbalife’s diet and nutritional products to the general
public; (ii) the Company engaged in deceptive trade practices where
it unduly pressured its members to purchase more products to resell
as one of its “distributors”; and (iii) as a result of the above,
the Company’s financial statements were materially false and
misleading at all relevant times.
On December 19, 2012, CNBC reported that Bill Ackman (“Ackman”),
Founder and Chief Executive Officer of Pershing Square Capital
Management, L.P. believed Herbalife to be a pyramid scheme after
having spent a year researching the Company’s fundamentals. On this
news, the price of Herbalife stock fell $5.16 per share, or 12.14%,
from a closing price of $42.50 on December 18, 2012, to close at
$37.34 per share on December 19, 2012.
On December 20, 2012, Ackman conducted a presentation concerning
Herbalife at the Sohn Investment Conference where he affirmed his
conclusion that Herbalife is a pyramid scheme. Ackman alleged that
since Herbalife’s founding, approximately 1.9 million distributors
have failed to make any money from selling Herbalife products,
costing them a net loss of $3.8 billion. On this news, the price of
Herbalife stock fell $10.07 per share over two trading sessions, or
26.97%, from a closing price of $37.34 on December 19, 2012, to
close at $27.27 per share on December 21, 2012.
On January 9, 2013, the New York Times reported that the
Securities and Exchange Commission (“SEC”) had launched an
investigation into Herbalife.
On January 23, 2014, U.S. Senator Edward J. Markey of
Massachusetts sent letters to the SEC and the Federal Trade
Commission (“FTC”), urging them to investigate Herbalife. Senator
Markey also sent a letter to Herbalife’s CEO, defendant Michael O.
Johnson, raising several pointed questions about the Company’s
business, reflecting concerns expressed by Ackman in December 2012.
On this news, the price of Herbalife stock dropped $7.61 per share,
or 10.35%, from a closing price of $73.53 on January 22, 2014, to
close at $65.92 per share on January 23, 2014.
On April 11, 2014, the Financial Times reported that the U.S.
Department of Justice and Federal Bureau of Investigation had
launched a criminal probe of Herbalife. On this news, the price of
Herbalife stock dropped $8.36 per share, or 13.97%, from a closing
price of $59.84 on April 10, 2014, to close at $51.48 per share on
April 11, 2014.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San
Francisco, New York, and Nashville, is a nationally recognized law
firm committed to advancing the rights of investors and promoting
corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of
the nation's top plaintiffs' law firms for eleven years. In
compiling the list, the National Law Journal examines recent
verdicts and settlements and looked for firms "representing the
best qualities of the plaintiffs' bar and that demonstrated unusual
dedication and creativity." Best Lawyers and U.S. News have also
named Lieff Cabraser as a "Law Firm of the Year" each year the
publications have given this award to law firms.
For more information about Lieff Cabraser and the firm’s
representation of investors, please visit
http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
Lieff Cabraser Heimann & Bernstein, LLPSharon M. Lee,
1-800-541-7358
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