# Galaxy sponsor Herbalife is not a pyramid scheme



## espola (Jul 15, 2016)

Or at least it won't be after they pay a $200 million settlement to FTC and change the way they do business.  One investor, William Ackman, who has bet heavily that Herbalife stock will drop, predicts the company will fail if they abandon their established ways.

http://www.wsj.com/articles/herbalife-to-pay-200-million-over-claims-of-misrepresentation-1468584397?mod=e2fb


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## Wez (Jul 15, 2016)

http://seekingalpha.com/article/3988705-ackman-emerges-victorious-herbalife

Dude, this was not good news for Herbalife, for those who understand the situation...

The FTC let them save face and stay in business, but they are doomed under the new business mandates.


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## gunner (Jul 16, 2016)

it's incredible that they are publicly traded company.  I completely agree that they will be doomed under the new business mandates.


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## Wez (Jul 18, 2016)

http://www.latimes.com/business/hiltzik/la-fi-hiltzik-herbalife-20160718-snap-story.html

_"FTC moves against Herbalife, but leaves a question: Why is this company still allowed in business?"

"The details in the FTC’s complaint against Herbalife are damning. It enticed individuals to sign up as “distributors” of its products by plying them with testimonials from previous recruits who talked about transforming themselves from near-bankrupts to earners of six figures or more a year hawking Herbalife inventory. Its promotional material bristled with “pictures of big houses, fancy cars, cash, and boats.”

In truth, the FTC observed, the vast majority of Herbalife distributors don’t make “anything approaching full-time or even part-time minimum wage.” Of the more than 680,000 distributors counted by Herbalife in 2014, only 205, or 0.03%, earned more than $600,000. And they earned most of their money by recruiting new distributors, not by selling product."
_
Horrible scam company.


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## espola (Jul 18, 2016)

Wez said:


> http://www.latimes.com/business/hiltzik/la-fi-hiltzik-herbalife-20160718-snap-story.html
> 
> _"FTC moves against Herbalife, but leaves a question: Why is this company still allowed in business?"
> 
> ...


Doesn't seem to bother the Galaxy.


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## Wez (Jul 18, 2016)

$$$$


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## ABCDE FC (Jul 18, 2016)

I was excited at the end of last season. They had a big sale on LAG merch and it looked like they were trying to get rid of all of the stuff with "Herbalife" on it. I was hoping a new sponsor was coming in. Maybe Amway or Mary Kay. Alas, they just decided to change the font and add "Nutrition" underneath.


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## Wez (Jul 19, 2016)

http://www.zerohedge.com/news/2016-07-17/herbalife-media-materially-misstates-ftc-outcome-icahn-files-potentially-questionabl

The headline about the FTC clearing Herbalife of being a pyramid scheme was false and was leaked by Icahn and Herbalife.  Dow Jones Neswire retracted it and nobody knows that... What a crock!


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## espola (Jul 19, 2016)

Wez said:


> http://www.zerohedge.com/news/2016-07-17/herbalife-media-materially-misstates-ftc-outcome-icahn-files-potentially-questionabl
> 
> The headline about the FTC clearing Herbalife of being a pyramid scheme was false and was leaked by Icahn and Herbalife.  Dow Jones Neswire retracted it and nobody knows that... What a crock!


Fraud piled on fraud.  Looks like the Trump University business plan -- keep on lying til they stop buying.


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## espola (Jul 19, 2016)

I remember when my wife brought home a case of Vemma.  I asked how much she paid for it -- free sample from a friend.  I asked what is it good for -- she handed me a brochure that had about a paragraph on its health benefits; the rest of the four pages were about how much money one could make selling it.  Pyramid scheme.

I also recall a few years back some "friendship" group that supposedly was going to make all the "friends" rich if they just kept sending each other money.  I saw pretty much the same pitch in a 1965 chain letter (and every few years since, usually with some little twist added to "guarantee" the money).


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## MajedAbdullah (Jul 19, 2016)

Galaxy needs a new face-lift A.S.A.P.!


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## Wez (Jul 19, 2016)

espola said:


> I remember when my wife brought home a case of Vemma.  I asked how much she paid for it -- free sample from a friend.  I asked what is it good for -- she handed me a brochure that had about a paragraph on its health benefits; the rest of the four pages were about how much money one could make selling it.  Pyramid scheme.


Yup, they were shutdown and have been allowed to continue business, their revenues are about 5% of what they were before the strict mandates were placed on them and all the big rats fled the ship...


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## Wez (Jul 20, 2016)

http://seekingalpha.com/symbol/HLF/videos/5323971


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