On or around 11/24/2015 (Date of order of final judgment)
Filing Date: April 14, 2014
According to the law firm press release, Herbalife is a network marketing company that sells weight management, nutritional supplement and personal care products. The Company sells its products globally through a network of independent distributors, which are typically individuals with little marketing expertise that were induced by the Company to purchase the Company's products in the hope that they would be able to resell the product to other consumers or distributors. Herbalife also sells literature and promotional materials to these distributors.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company's operations were based on a pyramid scheme whereby its distributors generate revenue by recruiting other distributors rather than 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 July 30, 2014, the Court issued an Order appointing lead plaintiff and approving the selection of lead counsel. Lead plaintiffs filed an amended complaint on September 18.
On March 16, 2015, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend their complaint. An amended complaint was filed on May 8.
On July 28, 2015, the Court issued an Order granting Defendants' Motion to dismiss. Plaintiffs were given leave to replead. Plaintiffs filed their amended complaint on August 27.
On November 23, 2015, the Court issued an Order granting Defendants' Motion to Dismiss with prejudice.
Company & Securities Information
Defendant: Herbalife Ltd.
Sector: Consumer Non-Cyclical
Industry: Personal & Household Products
Headquarters: Cayman Islands
Ticker Symbol: HLF
Company Market: New York SE
Market Status: Public (Listed)
About the Company & Securities Data
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