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Herbalife Ltd. Message Board

  • texexec63 texexec63 Feb 27, 2014 8:09 AM Flag

    Herbalife Investigator is Naming Names

    February 27, 2014.
    Bill Ackman perseveres in naming names of specific people in his ongoing investigation of Herbalife. The activist pointed the finger to another high-ranking distributor for actions Ackman claims helped create the company’s distribution methods. According to Ackman, Doran Andry, a 22-year Herbalife veteran who sits on the company’s Chairman’s Club has “victimized thousands of recruits.”
    Ackman’s group, Pershing Square, claims that the company has not made sure its own rules, regarding distributors, have been enforced. Calling such inaction a “willful blindness,” Pershing Square has also pointed to several Federal Trade Commission cases to say that Herbalife can be held liable for any misdeeds done by its distributors on its behalf.

    According to Ackman, Andry runs a lead-generation system named Financial Success System. Andry started FSS after an earlier, and similar, business she created was sued for fraud in 2002. Herbalife was named as a co-respondent in the fraud case against Andry. The case, ultimately settled for $6 million, may impact the direction Ackman’s current investigation takes.

    FSS collected names of people interested in a “business opportunity” like Herbalife. Working in mass volume, each lead cost FSS pennies. The leads were then sold to Herbalife distributors as potential recruits. Andry sold the leads for up to $130 each according to Pershing Square. Former distributors who bought the leads told Ackman and FTC that the leads were worthless.

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