Herbalife Finds a New Way Around an Old Criticism

The Herbalife Ltd. corporate headquarters in Torrance, California, on Jan. 10, 2013 Photograph by Patrick Fallon/Bloomberg

George Soros may have bought into Herbalife (HLF), but the company just made a major shift because of the man who’s bet $1 billion against it. Activist investor Bill Ackman calls the company a pyramid scheme that gets most of its money by signing up distributors who never distribute. Herbalife contends that’s because the distributors only want to buy for themselves, and, as if to prove so, it will now call them “members” instead.

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