Saturday, April 26, 2014

A Belated Herbalife Update: 2 states launch investigation, and endorsers freaked out

With TelexFree news coming fast and furious, other areas of interest aren't getting covered. Haven't covered any news about Herbalife for a while, so here's a bit of recap.

April 14th: New York State Attorney General Eric Schneiderman is investigating Herbalife as a suspect pyramid scheme. Apparently multiple sources have came forward with confessions / testimonies to prompt the investigation. Previously, NY Post had reported that no less than FBI and US Attorney office has started a criminal probe into Herbalife only a few days before that.

April 17th, Illinois State Attorney General Lisa Madigan has also started investigation into Herbalife as a possible pyramid scheme.

John Hempton, whom previously I've shown to have a blindspot for Herbalife, is apparently now regretting his decision to ride the Herbalife train. His fund apparently lost 2.4% of its value in a week and he apparently attributed it all to Herbalife's stock reacted "very badly" to recent regulatory notes mentioned earlier.

And finally, former secretary of state Madeleine Albright, who was apparently earning 10 mil over last six years consulting and shilling for Hebalife, is now worried about her own reputation. NYPost claimed that she met with Herbalife CEO Michael Johnson on a private strategy session.  However, she's not getting off the train yet.

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