Skip to content


Harry Cassin
Publisher and Editor

Andy Spalding
Senior Editor

Jessica Tillipman
Senior Editor

Bill Steinman
Senior Editor

Richard L. Cassin
Editor at Large

Elizabeth K. Spahn
Editor Emeritus

Cody Worthington
Contributing Editor

Julie DiMauro
Contributing Editor

Thomas Fox
Contributing Editor

Marc Alain Bohn
Contributing Editor

Bill Waite
Contributing Editor

Russell A. Stamets
Contributing Editor

Richard Bistrong
Contributing Editor

Eric Carlson
Contributing Editor

Herbalife discloses China FCPA investigation

Dietary supplement maker Herbalife said in a securities filing Friday that the SEC has requested documents and other information about the company’s anti-corruption compliance in China.

Herbalife said it has discussed the SEC’s investigation with the DOJ.

The company said in its Form 8-K (pdf) it is “cooperating with the SEC’s investigation and cannot predict the eventual scope, duration or outcome of the matter at this time.”

Activist investor Carl Icahn owns nearly 25 percent of Herbalife. His stake is worth about $1.2 billion.

Herbalife Ltd. is incorporated in the Cayman Islands and based in Los Angeles.

In July, Herbalife settled a Federal Trade Commission complaint by agreeing to change its multi-level marketing approach and refund $200 million to distributors.

The FTC complaint said Herbalife misled distributors with deceptive earnings projections. The complaint alleged that Herbalife’s compensation structure depended on recruiting other distributors instead of selling the company’s products.

Herbalife disputed the FTC findings but said it settled the action to avoid the cost and distraction of litigation.


Richard L. Cassin is the publisher and editor of the FCPA Blog.

Share this post


Comments are closed for this article!