LA-Based Herbalife Faces FTC Inquiry
LOS ANGELES (CBS/AP) — Los-Angeles based Herbalife is facing an inquiry from the Federal Trade Commission.
The nutrition and supplement said Wednesday that it received the civil investigative demand from the FTC on Wednesday. A representative from the FTC was not immediately available to comment.
Herbalife says it welcomes the inquiry, noting a "tremendous amount of misinformation in the marketplace" about its business. The company says it believes it is in compliance with all laws and regulators and plans to cooperate fully.
The company announced this just a day after hedge fund manager William Ackman renewed his attacks on the company. Ackman has repeatedly has bet against the company and repeatedly said he believes it operates as a pyramid scheme.
Herbalife Ltd.'s shares plunged more than 12 percent after a suspension in trading was lifted.
Former Los Angeles Mayor Antonio Villaraigosa became a senior advisor for the company last year.
(TM and © Copyright 2014 CBS Local Media, a division of CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2013 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)