Herbalife Comments on Pershing Square-Sponsored Advertisement
02 Mai 2014 - 1:21AM
Business Wire
Applauds Connie Chung’s Decision to Withdraw
from Event
Herbalife (NYSE:HLF) a leading global nutrition company, today
commented on the upcoming event hosted and sponsored by Bill Ackman
and Pershing Square Capital Management. As recently confirmed by
ABC News, Mr. Ackman has spent more than $20 million to date on his
campaign against Herbalife. Herbalife views the release of this
advertisement posing as a “documentary” as nothing more than
propaganda. The company believes this is yet another tactic in Mr.
Ackman’s calculated, coordinated and well-funded effort to destroy
a 34-year old company and support his $1 billion bet against
Herbalife.
We applaud Connie Chung’s decision to withdraw from this
spectacle. We believe the decision of an independent journalist to
withdraw shows Mr. Ackman’s event for what it is: misleading
propaganda designed to help achieve his ultimate goal of enriching
himself by driving down Herbalife’s stock.
As for the event's new moderator, Robert Fitzpatrick, a
self-proclaimed expert in multi-level marketing, he is a known
critic of the industry, and a consultant to Mr. Ackman and
three-time convicted felon and perpetrator of fraud Barry Minkow.
Herbalife believes Mr. Fitzpatrick’s involvement is further
evidence that this “documentary” is merely another biased attack on
our company. As such, Herbalife has not been asked to nor has any
intention of participating in Friday’s media event.
Since 2008, approximately 1.6 million new members have joined
Herbalife in the U.S., including nearly 84,000 in the first quarter
of this year alone. Studies have clearly shown that the vast
majority of Herbalife members have realistic expectations and a
positive experience.
The ‘Gold Standard’ consumer protection rules that Herbalife
offers all its members not only meet, but in most cases exceed the
standards prescribed by the Direct Selling Association (DSA), of
which the company is a long-time member in good standing. The Gold
Standard guarantees:
- no minimum purchase requirements and no
requirement to purchase any sales or business tools to start up or
succeed;
- low start-up costs and 100% 90-day
money back guarantee for cost of start-up pack;
- 100% money-back guarantee, plus
shipping costs, for all unsold products purchased within prior 12
months; and
- clear, accurate and timely disclosures
regarding potential income-generating opportunities in the
Statement of Average Gross Compensation, which can be found
here.
In addition, Herbalife requires that its members acknowledge in
writing that they are aware of each of these Gold Standard
Guarantees before their application is accepted.
The company has recently unveiled iamherbalife.com to highlight,
in their own words, the positive impact Herbalife has had on the
lives of the company’s members and customers. It also shines a
light on the truth behind the allegations made by Mr. Ackman and
the extraordinary lengths he has gone to in order to achieve his
goal of driving down Herbalife’s stock price for financial
gain.
About Herbalife Ltd.
Herbalife Ltd. (NYSE:HLF) is a global nutrition company that
sells weight-management, nutrition and personal care products
intended to support a healthy lifestyle. Herbalife products are
sold in more than 90 countries to and through a network of
independent members. The company supports the Herbalife Family
Foundation and its Casa Herbalife program to help bring good
nutrition to children. Herbalife's website contains a significant
amount of financial and other information about the company at
http://ir.Herbalife.com. The company encourages investors to visit
its website from time to time, as information is updated and new
information is posted.
FORWARD-LOOKING STATEMENTS
Although we believe that the expectations reflected in any of
our forward-looking statements are reasonable, actual results could
differ materially from those projected or assumed in any of our
forward-looking statements. Our future financial condition and
results of operations, as well as any forward-looking statements,
are subject to change and to inherent risks and uncertainties, such
as those disclosed or incorporated by reference in our filings with
the Securities and Exchange Commission. Important factors that
could cause our actual results, performance and achievements, or
industry results to differ materially from estimates or projections
contained in our forward-looking statements include, among others,
the following:
- our relationship with, and our ability
to influence the actions of, our Members;
- improper action by our employees or
Members in violation of applicable law;
- adverse publicity associated with our
products or network marketing organization, including our ability
to comfort the marketplace and regulators regarding our compliance
with applicable laws;
- the outcome of inquiries from
regulatory authorities;
- changing consumer preferences and
demands;
- our reliance upon, or the loss or
departure of any member of, our senior management team which could
negatively impact our Member relations and operating results;
- the competitive nature of our
business;
- regulatory matters governing our
products, including potential governmental or regulatory actions
concerning the safety or efficacy of our products and network
marketing program, including the direct selling market in which we
operate;
- legal challenges to our network
marketing program;
- risks associated with operating
internationally and the effect of economic factors, including
foreign exchange, inflation, disruptions or conflicts with our
third party importers, pricing and currency devaluation risks,
especially in countries such as Venezuela;
- uncertainties relating to the
application of transfer pricing, duties, value added taxes, and
other tax regulations, and changes thereto;
- uncertainties relating to
interpretation and enforcement of legislation in China governing
direct selling;
- uncertainties relating to the
interpretation, enforcement or amendment of legislation in India
governing direct selling;
- our inability to obtain the necessary
licenses to expand our direct selling business in China;
- adverse changes in the Chinese economy,
Chinese legal system or Chinese governmental policies;
- our dependence on increased penetration
of existing markets;
- contractual limitations on our ability
to expand our business;
- our reliance on our information
technology infrastructure and outside manufacturers;
- the sufficiency of trademarks and other
intellectual property rights;
- product concentration;
- changes in tax laws, treaties or
regulations, or their interpretation;
- taxation relating to our Members;
- product liability claims;
- whether we will purchase any of our
shares in the open markets or otherwise; and
- share price volatility related to,
among other things, speculative trading and certain traders
shorting our common shares.
We do not undertake any obligation to update or release any
revisions to any forward-looking statement or to report any events
or circumstances after the date hereof or to reflect the occurrence
of unanticipated events, except as required by law.
Herbalife Ltd.Barbara Henderson, 213-745-0517SVP, Worldwide
Corp. CommunicationsorAmy Greene, 213-745-0474VP, Investor
Relations
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