Herbalife Soars After Saying It's Close to FTC Resolution
- Company estimates $200 million payment in potential settlement
- FTC investigation still could lead to lawsuit, Herbalife says
Boxes of Herbalife Ltd. products await distribution at the Los Angeles Distribution Center in Carson, California, U.S., on Tuesday, March 4, 2014.
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
Herbalife Ltd. soared as much as 13 percent in early trading after saying it’s in late-stage talks to resolve a Federal Trade Commission probe into whether the nutrition company is a pyramid scheme.
If Herbalife settles with the agency, the company expects to pay about $200 million, according to a statement Thursday. The move would end a more than two-year investigation that followed a short-selling campaign by billionaire hedge fund manager Bill Ackman.