The real question some people must ask is why would Herbalife contact the SEC themselves if they were trying to cook their books? From all the reports I have read, they contacted the agency after Ackman made his accusation, presumably to clear their name. Perhaps They are not legit, I don't know, but it makes no sense to me why they would call in the regulators themselves if they were trying to hide something.
Herbalife contacted the SEC after Ackman shorted the stock. Not sure what the SEC could do. Even if there was an inquiry, going over financial documents alone will take months or years. Interviewing witnesses and other individuals will take months as well. Some of these matters is beyond investigators or prosecutors knowledge and understanding. Whoever is prosecuting this will need super strong evidence beyond labeling this company MLM since Amway, Nuskin, and other companies are doing the same and never been shut down. Proving HLF is not a legitimate company is not easy. Investigators and Prosecutors will move on with their lives, retires, or whatever and the case will be re-assigned to a different investigators and prosecutors and everything will be back to the beginning again.
This is a silly post. We all know that the company sells large amounts of products.
We know it because there are not huge numbers of "distributors" complaining.
Instead there are large numbers of distributors buying month after month.
Companies that are frauds have large amounts of debts and weak cash flow.
HLF has strong cash flow and limited debt.
Ackman will get toasted.
Short sellers purpose is to bring down the stock price and move on.That is their objective because if they get Govt involved they know it will take years to complete and will have plenty time to cover their shares. They have ill motives. I wish govt imposes 100% estate taxes on these guys so that their kids can work like our kids.