Herbalife Settles SEC Claims it Misled Investors for $20M

Sept. 27, 2019, 3:44 PM UTCUpdated: Sept. 27, 2019, 4:44 PM UTC

Herbalife Nutrition has agreed to pay $20 million to settle charges it made false and misleading statements about its China business model, according to the SEC.

  • SEC says claims made in quarterly & annual SEC filings between 2012 & 2018
  • Herbalife said while direct selling is permitted in China, multi-level marketing is not and its China business model therefore differs from those in other countries
  • SEC says Herbalife’s representations were untrue because it employed a very similar compensation model in China to those everywhere else
  • Herbalife consented to SEC’s order finding it violated certain antifraud & reporting provisions of federal ...

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