The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class
action litigation has been brought on behalf of those who purchased or
otherwise acquired the securities of Herbalife Ltd. (“Herbalife” or
the “Company”) (NYSE: HLF) between May 4, 2010 and April 11, 2014,
inclusive (the “Class Period”).
If you purchased or otherwise acquired Herbalife securities during the
Class Period, you may move the Court for appointment as lead plaintiff
by no later than June 13, 2014. A lead plaintiff is a representative
party who acts on behalf of other class members in directing the
litigation. Your share of any recovery in the action will not be
affected by your decision of whether to seek appointment as lead
plaintiff. You may retain Lieff Cabraser, or other attorneys, as your
counsel in the action.
Herbalife
investors who wish to learn more about the action and how to seek
appointment as lead plaintiff should click here or contact Sharon M.
Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Herbalife Securities Class
Litigation
Herbalife, headquartered in Los Angeles, California, is a multilevel
network marketing company that sells weight management, nutritional
supplement and personal care products.
The action alleges that throughout the Class Period, defendants made
materially false and misleading statements and/or failed to disclose
material facts regarding Herbalife’s business, operational and
compliance policies, specifically that: (i) Herbalife’s operations were
based on a pyramid scheme whereby its distributors generated revenue by
recruiting other distributors, rather than by selling Herbalife’s diet
and nutritional products to the general public; (ii) the Company engaged
in deceptive trade practices where it unduly pressured its members to
purchase more products to resell as one of its “distributors”; and (iii)
as a result of the above, the Company’s financial statements were
materially false and misleading at all relevant times.
On December 19, 2012, CNBC reported that Bill Ackman (“Ackman”), Founder
and Chief Executive Officer of Pershing Square Capital Management, L.P.
believed Herbalife to be a pyramid scheme after having spent a year
researching the Company’s fundamentals. On this news, the price of
Herbalife stock fell $5.16 per share, or 12.14%, from a closing price of
$42.50 on December 18, 2012, to close at $37.34 per share on December
19, 2012.
On December 20, 2012, Ackman conducted a presentation concerning
Herbalife at the Sohn Investment Conference where he affirmed his
conclusion that Herbalife is a pyramid scheme. Ackman alleged that since
Herbalife’s founding, approximately 1.9 million distributors have failed
to make any money from selling Herbalife products, costing them a net
loss of $3.8 billion. On this news, the price of Herbalife stock fell
$10.07 per share over two trading sessions, or 26.97%, from a closing
price of $37.34 on December 19, 2012, to close at $27.27 per share on
December 21, 2012.
On January 9, 2013, the New York Times reported that the Securities and
Exchange Commission (“SEC”) had launched an investigation into Herbalife.
On January 23, 2014, U.S. Senator Edward J. Markey of Massachusetts sent
letters to the SEC and the Federal Trade Commission (“FTC”), urging them
to investigate Herbalife. Senator Markey also sent a letter to
Herbalife’s CEO, defendant Michael O. Johnson, raising several pointed
questions about the Company’s business, reflecting concerns expressed by
Ackman in December 2012. On this news, the price of Herbalife stock
dropped $7.61 per share, or 10.35%, from a closing price of $73.53 on
January 22, 2014, to close at $65.92 per share on January 23, 2014.
On April 11, 2014, the Financial Times reported that the U.S. Department
of Justice and Federal Bureau of Investigation had launched a criminal
probe of Herbalife. On this news, the price of Herbalife stock dropped
$8.36 per share, or 13.97%, from a closing price of $59.84 on April 10,
2014, to close at $51.48 per share on April 11, 2014.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco,
New York, and Nashville, is a nationally recognized law firm committed
to advancing the rights of investors and promoting corporate
responsibility.
The National Law Journal has recognized Lieff Cabraser as one of
the nation's top plaintiffs' law firms for eleven years. In compiling
the list, the National Law Journal examines recent verdicts and
settlements and looked for firms "representing the best qualities of the
plaintiffs' bar and that demonstrated unusual dedication and
creativity." Best Lawyers and U.S. News have also
named Lieff Cabraser as a "Law Firm of the Year" each year the
publications have given this award to law firms.
For more information about Lieff Cabraser and the firm’s representation
of investors, please visit http://www.lieffcabraser.com.
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