ValueWalk reports: Herbalife Ltd. (NYSE:HLF) is one of Wall Street’s favorite controversies, and now it seems like there could be another problem on the company’s plate. Although it isn’t directly impacting Herbalife right now, it could at some point in the future, as the company has admitted to being under investigation by the Federal Trade Commission.
FTC moves against Vemma Nutrition
The FTC is now seeking an injunction against Vemma Nutrition, another multi-level marketing company which sells some products that are similar to those sold by Herbalife. Unfortunately for Herbalife, its business practices (some past and some present) seem to be in some ways similar to Vemma’s practices. ValueWalk contacted a pyramid scheme expert who found three areas of concern for Herbalife in the case filed against Vemma.
Court documents reviewed by ValueWalk (Hat tip to Quoth the Raven)