SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of those who purchased or otherwise acquired the securities of Herbalife Ltd. (“Herbalife” or the “Company”) (NYSE: HLF) between May 4, 2010 and April 11, 2014, inclusive (the “Class Period”).
If you purchased or otherwise acquired Herbalife securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than June 13, 2014. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Herbalife investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Herbalife Securities Class Litigation
Herbalife, headquartered in Los Angeles, California, is a multilevel network marketing company that sells weight management, nutritional supplement and personal care products.
The action alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material facts regarding Herbalife’s business, operational and compliance policies, specifically that: (i) Herbalife’s operations were based on a pyramid scheme whereby its distributors generated revenue by recruiting other distributors, rather than by 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 December 19, 2012, CNBC reported that Bill Ackman (“Ackman”), Founder and Chief Executive Officer of Pershing Square Capital Management, L.P. believed Herbalife to be a pyramid scheme after having spent a year researching the Company’s fundamentals. On this news, the price of Herbalife stock fell $5.16 per share, or 12.14%, from a closing price of $42.50 on December 18, 2012, to close at $37.34 per share on December 19, 2012.
On December 20, 2012, Ackman conducted a presentation concerning Herbalife at the Sohn Investment Conference where he affirmed his conclusion that Herbalife is a pyramid scheme. Ackman alleged that since Herbalife’s founding, approximately 1.9 million distributors have failed to make any money from selling Herbalife products, costing them a net loss of $3.8 billion. On this news, the price of Herbalife stock fell $10.07 per share over two trading sessions, or 26.97%, from a closing price of $37.34 on December 19, 2012, to close at $27.27 per share on December 21, 2012.
On January 9, 2013, the New York Times reported that the Securities and Exchange Commission (“SEC”) had launched an investigation into Herbalife.
On January 23, 2014, U.S. Senator Edward J. Markey of Massachusetts sent letters to the SEC and the Federal Trade Commission (“FTC”), urging them to investigate Herbalife. Senator Markey also sent a letter to Herbalife’s CEO, defendant Michael O. Johnson, raising several pointed questions about the Company’s business, reflecting concerns expressed by Ackman in December 2012. On this news, the price of Herbalife stock dropped $7.61 per share, or 10.35%, from a closing price of $73.53 on January 22, 2014, to close at $65.92 per share on January 23, 2014.
On April 11, 2014, the Financial Times reported that the U.S. Department of Justice and Federal Bureau of Investigation had launched a criminal probe of Herbalife. On this news, the price of Herbalife stock dropped $8.36 per share, or 13.97%, from a closing price of $59.84 on April 10, 2014, to close at $51.48 per share on April 11, 2014.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation's top plaintiffs' law firms for eleven years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms "representing the best qualities of the plaintiffs' bar and that demonstrated unusual dedication and creativity." Best Lawyers and U.S. News have also named Lieff Cabraser as a "Law Firm of the Year" each year the publications have given this award to law firms.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.