Pershing Square Issues Statement Regarding Herbalife
Video Series: Herbalife’s False and Misleading Claims Continue

Herbalife Distributor Style Bell
July 14, 2016

Pershing Square Releases 18th in a Series of Videos Showing Herbalife’s False and Misleading Claims Continue
Video Demonstrates Aggressive and Deceptive Recruiting Practices Persist

July 14, 2016 09:00 AM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released the 18th in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new recruits into its pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.

Today’s video features Herbalife President’s Team member Style Bell speaking at a webinar in September 2015. Mr. Bell claims:

“You guys are going to make a ridiculous amount of income. You can’t even imagine. … When I tell you what you think you’re going to get, it’s going to be times 10. What you think your life is going to be like, it’s going to be times a million and a hundred thousand. Listen to what I’m saying. It’s going to happen because of the value that you add to other people.”

99% of Herbalife distributors earn less than minimum wage and 86% earn nothing from the company. The small group that makes money does so primarily from recruiting, not retail sales. Herbalife distributors often mislead recruits by telling them that they can get rich with Herbalife. But even those distributors admit to recruits that just retailing the product isn’t enough to build a business. They need to recruit in order to have a chance to advance in the marketing plan and earn income from the company.

A company is deemed a pyramid scheme if the participants make money primarily from recruiting rather than sales to actual customers.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.

Herbalife Distributor Sheriff Taiwo
July 13, 2016

Pershing Square Releases 17th in a Series of Videos Showing Herbalife’s False and Misleading Claims Continue
Video Demonstrates Aggressive and Deceptive Recruiting Practices Persist

July 13, 2016 09:00 AM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released the 17th in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new recruits into its pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.

Today’s video features Herbalife President’s Team member Sheriff Taiwo speaking at a webinar in May 2016. Mr. Taiwo claims:

“You get to change your own life financially … I was able to buy my mother a house …. I’m able to put my daughter in some of the best schools in the country … and it’s because of the work that I’ve been able to put in inside of Herbalife.”

A company is deemed a pyramid scheme if the participants make money primarily from recruiting rather than sales to actual customers. Mr. Taiwo urges recruits to pitch 300 people per month. At that rate, Herbalife’s U.S. distributors would have to speak with roughly two billion people per year, and they would run through the entire U.S. population in a matter of months.

“This is just a numbers game. If your recruitment level is low, it’s going to be really really difficult,” Mr. Taiwo continues.

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage and 86% earn $0 from the company.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.

Herbalife Distributor Melissa Impett
July 12, 2016

Pershing Square Releases 16th in a Series of Videos Showing Herbalife’s False and Misleading Claims Continue
Video Demonstrates Aggressive and Deceptive Recruiting Practices Persist

July 12, 2016 09:00 AM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released the 16th in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new recruits into its pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.

Today’s video features Herbalife distributor Melissa Impett hosting a webinar in July 2016. Ms. Impett claims:

“I want to be able to retire my dad so badly… I want to see a check from my organization that says $10,000 in one month. And it is so incredibly possible. … I want you guys looking at yourself in the mirror and saying, I deserve this, I can do this, I will do this … because the more you do that … the faster you’re going to be able to retire your parents, or you’re going to get a check from Herbalife that’s going to knock you off your seat because of the organization that you’re growing.”

A company is deemed a pyramid scheme if the participants make money primarily from recruiting rather than sales to actual customers.

“You should be recruiting. You can’t just retail, your business won’t grow. You won’t get those checks in the mail,” Ms. Impett urges her recruits.

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage and 86% earn $0 from the company.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.

Herbalife Distributor Melissa Lox
July 11, 2016

Pershing Square Releases 15th in a Series of Videos Showing Herbalife’s False and Misleading Claims Continue
Video Demonstrates Aggressive and Deceptive Recruiting Practices Persist


July 11, 2016 09:00 AM Eastern Daylight Time

NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released the 15th in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new recruits into its pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.

“You can work with clients but you can also develop a team and that’s when your income can start getting really big really fast.”

Today’s video features Herbalife distributor Melissa Lox speaking at a training event that was posted to YouTube in 2015. Ms. Lox claims:

“You can work with clients but you can also develop a team and that’s when your income can start getting really big really fast.”

A company is deemed a pyramid scheme if the participants make money primarily from recruiting rather than sales to actual customers. Ms. Lox continues:

“All of a sudden, I’m looking at this thing and I’m making $4,000 a month, $5,000 a month, $8,000 a month. And I’m like, ‘why am I not going full-time with Herbalife?’ … Just get clear what’s possible here … I’m making a six-figure income but I’m looking at where Jerry’s at, going ‘$26,000 a month sounds really incredible.’”

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage and 86% earn $0 from the company.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.

Herbalife Distributor Nick Fevola
July 8, 2016

Pershing Square Releases 14th in a Series of Videos Showing Herbalife’s False and Misleading Claims Continue
Video Demonstrates Aggressive and Deceptive Recruiting Practices Persist


July 08, 2016 09:00 AM Eastern Daylight Time

NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released the 14th in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new recruits into its pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.

Today’s video features Herbalife distributors Nick Fevola and Tiffany Malichis speaking at a training event that was posted to YouTube in 2015. Mr. Fevola claims:

“Over two years part-time, I was able to completely get myself out of debt. And that was a significant amount of money, let me just say that, so that was huge. This month, I’ll make – right now, it’s already over $2,000 this month, and that’s part time … so I went from like literally stressed out between the jobs, not knowing where the next check was going to come from, to now it feels like free money. … All you got to do is keep coming back to the trainings … and you’ll get whatever you want.”

Despite his misleading claims, Mr. Fevola has been promoted by Herbalife as a role model to other distributors. The company even sent him to Washington D.C. in May 2016 to speak to members of Congress about Herbalife.

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage and 86% earn $0 from the company.

A company is deemed a pyramid scheme if the participants make money primarily from recruiting rather than sales to actual customers.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.

Distributor Leila Jelloule
July 7, 2016

Pershing Square Releases 13th in a Series of Videos Showing Herbalife’s False and Misleading Claims Continue
Video Demonstrates Aggressive and Deceptive Recruiting Practices Persist

July 07, 2016 09:00 AM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released the 13th in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new recruits into its pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.
Today’s video features Herbalife Millionaire Team member Leila Jelloule speaking at a training event that was posted to YouTube in 2015. Ms. Jelloule claims:

“Within two years, I started making over $10,000 a month … from today, what if in 2017, or earlier, you were making $10,000 a month? … If I could tell you, this is the path. In two years or less, you can make over $10,000 a month.”

Speaking onstage at a 2015 Herbalife event, Ms. Jelloule explained the importance of recruiting:

“Find your method. Master it and duplicate it.”

Despite her misleading claims, Ms. Jelloule has been promoted by Herbalife as a role model to other distributors. The company even sent her to Washington D.C. in May 2016 to speak to members of Congress about Herbalife.

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage and 86% earn $0 from the company.

A company is deemed a pyramid scheme if the participants make money primarily from recruiting rather than sales to actual customers.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.

Distributor Hemang Pandit
July 6, 2016

Pershing Square Releases 12th in a Series of Videos Showing Herbalife’s False and Misleading Claims Continue
Video Demonstrates Aggressive and Deceptive Recruiting Practices Persist

July 06, 2016 09:00 AM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released the 12th in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new recruits into its pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.

Herbalife is a pyramid scheme that requires constant recruiting in order to survive. Herbalife has rapidly expanded internationally as the need to replenish its distributor base grows.

In today’s video, Herbalife President’s Team member Hemang Pandit claims:

“The income which we make and the money we save, we are forced to buy a house every year. You know the problem with us as President’s Team? The main discussion as President’s Team? What are we going to do with the money which is coming now? My income was growing by $100,000 a year. Now it’s growing at $200,000 a year. It’s going to grow by $500,000 a year. What am I going to do with that?”

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage and 86% earn $0 from the company.

A company is deemed a pyramid scheme if the participants make money primarily from recruiting rather than sales to actual customers.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.

Distributor Jack Silva
July 5, 2016

Pershing Square Releases 11th in a Series of Videos Showing Herbalife’s False and Misleading Claims Continue
Video Demonstrates Aggressive and Deceptive Recruiting Practices Persist

July 05, 2016 09:00 AM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released the 11th in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new recruits into its pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.

With social media, Herbalife distributors’ false and misleading claims spread quickly online. Today’s video features a webinar hosted by President’s Team member Jack Silva that was posted to YouTube in 2016. Mr. Silva is a member of Susan Peterson’s organization. Ms. Peterson is a member of Herbalife’s Founder’s Circle and is one of the top worldwide Herbalife distributors. Ms. Peterson and Mr. Silva collaborate on an event series called, “Meet with Elite.”

In today’s video, Mr. Silva claims:

“If you have social media skills, this’ll fit you like a glove. … whether you want to work at home, or work by the poolside, or work at the park, or work from the couch, or work at the gym, or work while lying in your bed, all you need is a smartphone or your laptop and you can start making money immediately. … The more you work, the more money you make. … This is not a get-rich-quick plan, but I can promise you this, people are getting rich working with us and so can you.”

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage and 86% earn $0 from the company.

A company is deemed a pyramid scheme if the participants make money primarily from recruiting rather than sales to actual customers.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.

The Game of Herbalife
July 1, 2016

Pershing Square Releases 10th in a Series of Videos Showing Herbalife’s False and Misleading Claims Continue
Video Demonstrates Aggressive and Deceptive Recruiting Practices Persist

July 01, 2016 09:00 AM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released the 10th in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new recruits into its pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.

Herbalife claims that it has cleaned up its act in recent years but today’s video shows that the false and misleading claims that Herbalife Founder Mark Hughes made years ago, continue to be echoed by distributors today. Herbalife CEO Michael Johnson said:

“I always say to the executives, ‘go back and watch Mark [Hughes],’ because we’re not doing anything differently today than what was his original dream.”

In describing how to recruit new distributors and build an organization, Mark Hughes says:

“First thing you want to do is build wide, then you want to build deep. This is the game of Herbalife.”

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage and 86% earn $0 from the company.

A company is deemed a pyramid scheme if the participants make money primarily from recruiting rather than sales to actual customers.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.

Herbalife Distributor Manuel Garcia
June 30, 2016

Pershing Square Releases Ninth in a Series of Videos Showing Herbalife’s False and Misleading Claims Continue
Video Demonstrates Aggressive and Deceptive Recruiting Practices Persist

June 30, 2016 09:00 AM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released the ninth in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new recruits into its pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.

With social media, Herbalife distributors’ false and misleading claims spread quickly online. The claims then remain easily accessible online for years. Today’s video features a webinar that was posted to YouTube in June 2016.

In today’s video, Herbalife distributor Manuel Garcia, claims: “You decide how much you want to make. … and I’m pretty sure with this, that you can actually reach your independence and make your dreams come true…”

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage and 86% earn $0 from the company.

A company is deemed a pyramid scheme if the participants make money primarily from recruiting rather than sales to actual customers.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.

Herbalife Distributor Liz Almaguer
June 29, 2016

Pershing Square Releases Eighth in a Series of Videos Showing Herbalife’s False and Misleading Claims Continue
Video Demonstrates Aggressive and Deceptive Recruiting Practices Persist

June 29, 2016 09:00 AM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released the eighth in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new recruits into its pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.

“Create an income that other people want to have … People are going to think, it’s their lucky break, only Flexx can make $10,000 a month because he’s Flexx. No. Not at all. A lot of people can and you guys know that.”

In yesterday’s video, Pershing Square showed that many Herbalife distributors are now increasingly using social media and private webinars to deceive new recruits and to train them to do the same. Today’s video explores a series of webinars posted by Herbalife distributor Liz Almaguer in 2016.

In one webinar, Ms. Almaguer claims:

“Create an income that other people want to have … People are going to think, it’s their lucky break, only Flexx can make $10,000 a month because he’s Flexx. No. Not at all. A lot of people can and you guys know that.”

In another webinar, Ms. Almaguer shows income testimonials from 18 different distributors who claim their monthly incomes range from $300 per month to $19,078 per month. For the testimonials where disclosure was provided, ~70% of the income earned by those distributors came from recruiting activities.

A company is deemed a pyramid scheme if the participants make money primarily from recruiting rather than sales to actual customers.

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage and 86% earn $0 from the company.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.

The Truth About Herbalife’s Webinars
June 28, 2016

Pershing Square Releases Seventh in a Series of Videos Showing Herbalife’s False and Misleading Claims Continue
Video Demonstrates Aggressive and Deceptive Recruiting Practices Persist

June 28, 2016 09:00 AM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released the seventh in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new recruits into its pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.

Herbalife continues to invent new methods of recruiting as old methods face public scrutiny and fall out of favor. In the past, Herbalife distributors used aggressive lead generation systems as a way to recruit new distributors. Pershing Square and others highlighted the many abuses of lead generation systems, and while they still exist, their popularity has diminished.

Now, under regulatory and public scrutiny, many Herbalife distributors have been forced to change course again. Today’s video shows how Herbalife distributors are now increasingly using social media and private webinars to deceive new recruits and train them to do the same. In this setting, distributors share the stark truth about Herbalife’s pyramid scheme:

“Duplication is so important in this business … multi-level marketing is a duplication business.”

Herbalife President’s Team member Heather Schwartz in 2016 said:

“So my income went up to $5,000 … and then it went up to $8,000 and I was like ok well how many people can I teach how to make that type of income. So as I taught people how to make that kind of income, my income went up: $15,000 a month, $18,000 a month, $23,000 a month. And my income has been over $30,000 a month for years now.”

Another distributor claims:

“If you want to make an extra $2,000, or $3,000, $4,000 … it’s up to you. That’s actually your choice.”

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage and 86% earn $0 from the company.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.

Sarah Olguin and Ari Campos Taalib-Din
June 27, 2016

Pershing Square Releases Sixth in a Series of Videos Showing Herbalife’s False and Misleading Claims Continue
Video Demonstrates Aggressive and Deceptive Recruiting Practices Persist

June 27, 2016 09:00 AM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released the sixth in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new recruits into its pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.

Today’s video features Herbalife distributors making outrageous claims about the business in 2014 and 2015. In the video, Herbalife distributor Sarah Olguin claims:

“Herbalife allows you to make as much money as you want in a day, in a week, in a month, in a year, it’s all about ‘earn your worth.’ … It’s all done online, so you’re never taking a risk. It’s a very riskless business and I think that’s one of the best parts about Herbalife.”

Herbalife GET team member Ari Campos Taalib-Din claims:

“You have the opportunity of a lifetime. … This company’s changing lives.”

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage and 86% earn $0 from the company.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.

CEO Michael Johnson & President Des Walsh
June 24, 2016

Pershing Square Releases Fifth in a Series of Videos Showing Herbalife’s False and Misleading Claims Continue
Video Demonstrates Aggressive and Deceptive Recruiting Practices Persist

June 24, 2016 09:00 AM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released the fifth in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new recruits into its pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.

Today’s video features prominent Herbalife distributors and executives, all of whom are still with the company today, making false and misleading claims about the business and teaching others to do the same.

Herbalife CEO Michael Johnson claims: “He [Mark Hughes] had this incredible dream that he could build financial independence for people globally, and we’re doing that.”

Chairman’s Club member Doran Andry misleads new recruits into thinking that they will make a fortune as soon as they start in Herbalife: “Learn as you go, but get rich as you learn.”

President’s Team member Enrique Carrillo explains how sponsors make money primarily from their downlines: “My sponsors are like … look at all the money I am making off you. How about next week you make an extra $1,000, $2,000, up to $100,000 a month.”

President’s Team Member Cindy Patterson confesses that success at Herbalife requires endless recruiting: “It’s about duplicating, it’s about growing our royalty. If we are just there slinging a bunch of shakes and yes having a lot of fun … we are there to duplicate, to grow our checks … that’s what we are there for.”

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage and 86% earn $0 from the company.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.

Herbalife President’s Team Member Garrain Jones
June 23, 2016

Pershing Square Releases Fourth in a Series of Videos Showing Herbalife’s False and Misleading Claims Continue

Video Demonstrates Aggressive and Deceptive Recruiting Practices Persist

NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released the fourth in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new recruits into their pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.

Today’s video features Herbalife President’s Team member Garrain Jones and members of his downline making false and misleading claims about the company in 2016. In the video, Jones proclaims:

Think about this. You can make as much money as you want. … It’s going to be hard. But it will be worth it when you’re looking at your mom and say, ‘mom, here’s the keys to your house, your dream house.’ It’s going to be worth it when your unborn children already got their college tuition paid for right now.

Despite his misleading claims, Jones has been promoted by Herbalife as a role model to other distributors. The company recently sent him on its “Leadership Development European Tour,” where Jones spoke on stage about Herbalife.

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage and 86% earn $0 from the company.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.

Herbalife President’s Team Member Celeste Richmond
June 22, 2016

Pershing Square Releases Third in a Series of Videos Showing Herbalife’s False and Misleading Claims Continue

Video Demonstrates No Changes to Decades-old Practice of Deceptive Recruiting

NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released the third in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new entrants into their pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.

Today’s video features Herbalife President’s Team member Celeste Richmond making false and misleading claims about the company in May 2015. In the video, she claims:

When you build up a royalty in Herbalife, let’s say you’re making some of those high incomes like Sheriff was talking about: $20,000, $30,000, $40,000, $70,000 a month because I know people that make well over that per month in Herbalife. By the time you are older, say you’re making $70,000 a month and it’s your time to go … your Herbalife membership can be passed on to your children and they will be able to collect that income for the rest of their lives.

Despite her misleading claims, Richmond has been promoted by Herbalife as a role model to other distributors. The company even sent her to Washington D.C. in 2014 to speak to members of Congress about the company.

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage from the company.

Pershing Square will release the fourth video in the series tomorrow, June 23, 2016, at 9:00AM. To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.

Herbalife Chairman’s Club Member Stephan Gratziani
June 21, 2016

Pershing Square to Release a Series of Videos Showing Herbalife’s False and Misleading Claims Continue
NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today announced it will release a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity. The first video is available at www.FactsAboutHerbalife.com.Pershing Square has previously documented numerous examples of Herbalife’s top distributors’ aggressive tactics that mislead new recruits. Herbalife’s management allows these top distributors to continue at the company despite their track record. The top distributors at the company have remained largely unchanged in the last decade.Herbalife claims that it has cleaned up its act in recent years. It hasn’t. These videos show that veteran distributors who have made misleading claims continue to have a prominent role at Herbalife, and new distributors are making misleading claims every day as they try to advance in the company.

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage from the company.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com

Herbalife Chairman’s Club Member Martin Ernst
June 20, 2016

Pershing Square to Release a Series of Videos Showing Herbalife’s False and Misleading Claims Continue
NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today announced it will release a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity. The first video is available at www.FactsAboutHerbalife.com.Pershing Square has previously documented numerous examples of Herbalife’s top distributors’ aggressive tactics that mislead new recruits. Herbalife’s management allows these top distributors to continue at the company despite their track record. The top distributors at the company have remained largely unchanged in the last decade.Herbalife claims that it has cleaned up its act in recent years. It hasn’t. These videos show that veteran distributors who have made misleading claims continue to have a prominent role at Herbalife, and new distributors are making misleading claims every day as they try to advance in the company.

Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage from the company.

To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com

Video Shows Herbalife CEO Michael Johnson’s Promoting False Business Opportunity

May 25, 2016 09:36 AM Eastern Daylight Time

NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released a video of Herbalife CEO Michael Johnson speaking at an Herbalife Opportunity Meeting in Lima, Peru on August 17, 2010. The meeting, which was simulcast in 24 other countries, shows CEO Michael Johnson giving his carefully honed pitch to recruit victims into the Herbalife scam:

“Remember, Herbalife’s a gift. You give the gift of Herbalife to people when you get them on the product. You give the people the gift of long-term income when you make them a distributor.”

Herbalife is fundamentally the same company today that it was when Michael Johnson stood on that stage in Peru.

This video is a reminder that the pernicious behavior at Herbalife is not the result of a few “bad apple” distributors as the company has claimed. The fraudulent behavior stretches from the CEO to the Board of Directors to the top distributors and beyond. Herbalife’s compensation plan and financial incentives drive wrongful behavior and consumer harm and allow the company’s fraudulent business opportunity pitch to thrive.

Michael Johnson was right when he said:

“This business opportunity not only can, it will change your life.”

Unfortunately, for the 99% of distributors who earn less than minimum wage from the company and the 86% of distributors who earn $0 from the company, the change in their lives is for the worse.

Vemma and Herbalife, Side by Side

Pershing Square analysis details significant similarities between Herbalife and FTC-alleged pyramid scheme Vemma