Herbalife isn't having a great time but it's fine. No really, it's fine.
First, they had to squash some rumors a few days ago with this press release:
We have no knowledge of any ongoing investigation by the DOJ or the FBI, and we have not received any formal nor informal request for information from either agency. We take our public disclosure obligations very seriously. Herbalife does not intend to make any additional comments regarding this matter unless and until there are material developments.
Got it? You'll know when they know. Until then, you don't know squat. Moving on, then this happened:
Illinois Attorney General Lisa Madigan's office is investigating nutrition and weight loss company Herbalife, her press secretary said on Thursday.
Madigan's office had been urged to look into the company months ago by civil rights groups who claimed that the company was a pyramid scheme targeting minorities. Hedge fund manager William Ackman was the first to call Herbalife a fraud and placed a $1 billion bet against the company in 2012.
The company denies the allegations.
So, naturally, they issued another press release:
We have more than 15,000 members and many more thousands of satisfied customers in Illinois. We will continue to provide the outstanding products and services that they have come to expect from Herbalife over the past three decades. We will always support the good work of our members.
We are confident in the integrity of our longstanding business and the Company's compliance with applicable laws and regulations. We look forward to working with the Illinois Attorney General's office to resolve the consumer complaints it has received.
Scott London is probably kicking himself right now. He'd be making a killing ahead of all these investigations and subsequent Herbalife denials if he could have kept his shit under wraps just a little longer. Oh well.
