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Herbalife Spends $2 Million Fighting Pyramid Scheme Claims

by Salvatore P. Ciulla on April 6, 2014 · 0 comments

in White Collar Crime

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Orange County criminal attorneyGovernment documents revealed that the nutritional supplement company Herbalife spent $2 million in lobbying costs fighting claims that the company is nothing more than a pyramid scheme and that it routinely violates Chinese labor laws.

Last week, Herbalife stock prices dropped 15 percent after the Federal Trade Commission announced it would be looking into the company. A statement from Herbalife said they will cooperate and welcome the investigation.

Billionaire hedge-fund manager William Ackman spent a more than $250,000 lobbying for action against the company. He says 88 percent of Herbalife distributors earn nothing, and wants a fraud investigation conducted to find out if the company is more about weight loss supplements or turning customers into distributors.

Ackman also alleges that Herbalife reps unfairly target minorities, an assertion the civil rights group United Latin American Citizens agrees with. Both have asked the California Attorney General to look into Herbalife to see if the company has a policy of targeting either minorities or low-income areas.

The Law Office of Salvatore Ciulla located in Orange County, California, represents individuals accused of murder and manslaughter, aggravated assault, burglary, theft and embezzlement, child abuse and domestic violence, narcotics possession and sales, drunk driving (DUI) and vehicular homicide, sexual assault and three strikes cases. We also take Juvenile Court cases and all misdemeanor offenses.

Our mission is to provide the best legal representation and counsel to all clients. Every client and every case is important. Call us at 714-542-0500 for a free analysis of your case and/or charges, or contact us at SalCiullaLaw.com.

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