The $10.7B bid for Avon would seem to be another indication of the validity of the Herbalife business model. Companies with their advisors (bankers, lawyers and auditors) in tow, don't make $10.7B bids for flawed, illegal business models. Also, good to see the insider buying and acceleration of the stock buy-back. As the former CEO of a public company, I can certainly see how the risk factor disclosures highlighted by Greenberg might cause some to be concerned, I have yet to see anything that would cause me to worry excessively here. If you focus on the risk factors of any public company, you wouldn't invest in any of them.
"Not all multilevel marketing plans are legitimate. Some are pyramid schemes. It’s best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products."
It is possible that those investors were able to look at Avon and find that most of the product is being sold to end-users. In fact, I noticed that anyone can buy product on the website, which would be a sale to someone outside the network, where HerbaLife tries to set me up with a representative, losing a potential sale by making me chase them to give them my money.