Herbalife Settles Pyramid Probe as FTC Seeks Major Changes

July 15, 2016 2:33 PM

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Herbalife Settles Pyramid Probe as FTC Seeks Major Changes

Herbalife Ltd. agreed to pay $200 million to settle U.S. claims that the nutrition company deceived consumers with get-rich-quick promises, as the U.S. government forced sweeping changes to the company’s business but stopped short of hedge fund manager Bill Ackman’s call to shut it down.

The U.S. Federal Trade Commission described the firm’s business in harshly critical terms and said the company must restructure and stop misrepresenting how much money its members are likely to make. Herbalife claimed people could quit their jobs and earn thousands of dollars a month by selling its ...

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