Press release from Business Wire
Lieff Cabraser Heimann & Bernstein, LLP Announces Investigation Of Herbalife Ltd. For Potential Securities Law Violations
Wednesday, May 09, 2012
SAN FRANCISCO (Business Wire) -- The law firm of Lieff Cabraser Heimann & Bernstein, LLP is investigating potential violations of securities laws by Herbalife Ltd. (“Herbalife” or the “Company”) (NYSE:HLF). Herbalife shareholders who wish to learn more about the investigation, and persons with information relating to the investigation, should click here or contact Sharon M. Lee of Lieff Cabraser toll free at (800) 541-7358.
Herbalife is a global nutrition company that sells weight-management, nutrition and personal products. On April 30, 2012, the Company announced record first quarter results. The following day, on May 1, 2012, during the Company's first quarter earnings conference call, questions were raised related to Herbalife's multi-level marketing and sales technique. Specifically, the questions involved (1) sales outside of Herbalife's network of distributors compared to product consumption by distributors, (2) recruiting incentives for distributors relative to their compensation for selling the product, and (3) the breakdown of distributors based on the scale of their purchases, which Herbalife had recently stopped disclosing.
Subsequently, on May 1, 2012, Herbalife stock price dropped on heavy trading volume to close at $56.30 per share, a loss of 19.9% from the closing price of $70.32 on the previous trading day. On May 2, 2012, the stock declined an additional $3.60, or 6.4%, causing Herbalife shareholders to suffer significant losses.
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.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs' law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs' law firms in the United States to receive this honor for the last nine consecutive years.
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.
Lieff Cabraser Heimann & Bernstein, LLP
Sharon M. Lee, 800-541-7358