Herbalife (NYSE:HLF) a leading global nutrition company, today commented
on the recent ruling by the Ninth Circuit Court of Appeals in its
decision in FTC v. BurnLounge, Inc.
Herbalife issued the following statement:
Today’s decision by the United States Court of Appeals for the Ninth
Circuit in the FTC v. BurnLounge, Inc. validates product consumption by
participants as a legitimate measure of demand for multi-level marketing
companies and rejects Bill Ackman’s fundamental thesis against
Herbalife. This ruling from one of the country’s most influential courts
is consistent with Herbalife’s position that the widespread demand
Herbalife has demonstrated for its products, by members and non-members
alike, confirms that it is a multi-level marketing company with proper
business practices.
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:
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our relationship with, and our ability to influence the actions of,
our Members;
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improper action by our employees or Members in violation of applicable
law;
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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;
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the outcome of inquiries from regulatory authorities;
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changing consumer preferences and demands;
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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;
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the competitive nature of our business;
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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;
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legal challenges to our network marketing program;
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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;
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uncertainties relating to the application of transfer pricing, duties,
value added taxes, and other tax regulations, and changes thereto;
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uncertainties relating to interpretation and enforcement of
legislation in China governing direct selling;
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uncertainties relating to the interpretation, enforcement or amendment
of legislation in India governing direct selling;
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our inability to obtain the necessary licenses to expand our direct
selling business in China;
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adverse changes in the Chinese economy, Chinese legal system or
Chinese governmental policies;
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our dependence on increased penetration of existing markets;
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contractual limitations on our ability to expand our business;
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our reliance on our information technology infrastructure and outside
manufacturers;
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the sufficiency of trademarks and other intellectual property rights;
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product concentration;
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changes in tax laws, treaties or regulations, or their interpretation;
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taxation relating to our Members;
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product liability claims;
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whether we will purchase any of our shares in the open markets or
otherwise; and
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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.
Copyright Business Wire 2014