Finally some good news for Herbalife. The company has been plagued lately with lawsuits and bad press over high levels of lead in the products, and I’m sure will take good news anywhere they can get it.
The nutritional supplement company announced that it has received a letter from the L.A. office of the SEC saying that they have completed their year long investigation into the company and has recommended that no action be taken agains the company.
Here’s how it all started…..apparently in mid 2007, the SEC began an investigation into some suspicious activity involving the timing of trading of Herbalife securities by a mid-level employee. The SEC was also investigating the extent of personal use of Herbalife products by distributors and the company’s related policies and procedures.
Herbalife cooperated fully with the SEC and its investigation over the last year and even disclosed to the public the accusations as well as the fact that they were being investigated.
I’m sure this comes as a huge relief to the company that the Securities and Exchange Commission has investigated the company’s practices thoroughly and found no wrong-doing. This is a small ray of hope for the company who is going through some rough times lately. They are still not out of the woods on the lead lawsuit but this was a big hurdle to get over and one they can finally put behind them.
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