NEW YORK, NY / ACCESSWIRE / August 31, 2020 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Herbalife Nutrition Ltd. ("Herbalife" or "the Company") (NYSE:HLF). Investors who purchased Herbalife securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: www.bgandg.com/hlf.
The investigation concerns whether Herbalife and certain of its officers and/or directors have violated federal securities laws.
On May 7, 2020, Herbalife filed its quarterly report for the first quarter of 2020 with the U.S. Securities and Exchange Commission ("SEC"). In its quarterly report, Herbalife advised investors that the Company had "reached an understanding in principle" to resolve bribery investigations by both the SEC and Department of Justice ("DOJ") in connection with Herbalife's China operations. Per the agreement, Herbalife stated that it "would enter into an administrative resolution with the SEC with respect to alleged violations of the books and records and internal controls provisions of the FCPA [Foreign Corrupt Practices Act]"; "would separately enter into a deferred prosecution agreement ("DPA") with DOJ, under which DOJ would defer criminal prosecution of the Company for a period of three years"; and "would agree to pay the SEC and DOJ aggregate penalties, disgorgement and prejudgment interest of approximately $123 million." As media outlets reported on the Company's settlement over the following days, Herbalife's stock price fell $1.61 per share, or 3.9%, to close at $39.62 per share on May 11, 2020.
On August 28, 2020, the SEC accepted the Offer of Settlement and published an administrative order stating that Herbalife violated the books and records and internal controls provisions of the FCPA. That same day, both Herbalife and the DOJ entered into a court-approved DPA under which DOJ deferred criminal prosecution for three years. During the three-year period, Herbalife is must accept compliance self-reporting obligations. If Herbalife is compliant during this period, the deferred charge will be dismissed with prejudice. Herbalife also agreed to pay the SEC and DOJ aggregate penalties, disgorgement, and prejudgment interest of approximately $123 million. Following this news, Herbalife stock dropped during intraday trading on August 28, 2020.
If you are aware of any facts relating to this investigation or purchased Herbalife shares, you can assist this investigation by visiting the firm's site: www.bgandg.com/hlf. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | info@bgandg.com
SOURCE: Bronstein, Gewirtz & Grossman, LLC
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