Video Released by Pershing Square Capital Management Shows Herbalife Distributors Routinely Make False, Dangerous and Illegal Medical Claims to Potential Customers
Herbalife Distributors Directly Violate FDA Regulations and a 1986 California Injunction
NEW YORK, Dec. 15, 2014 /PRNewswire/ -- Pershing Square Capital Management today released a video showing that Herbalife distributors regularly make false and misleading medical claims about the health benefits of Herbalife products to potential distributors in direct violation of Food and Drug Administration regulations and a binding 1986 California court injunction that remains in effect which demanded that Herbalife and its distributors immediately stop this dangerous and illegal practice.
A review of publicly available video footage shows that Herbalife distributors have consistently and brazenly violated the injunction and the law over a more than 30-year period. It is impossible for Herbalife to claim that it is unaware of this rampant practice among its distributors given that these false claims are regularly made by top-level leaders and distributors within Herbalife's organization, often at company-sponsored events. The video includes misleading statements from Herbalife CEO Michael Johnson; Chairman's Club Members Chris Carley and Tanya McDowall; President's Team members Larry and Heather Hulsey and Carla Berg; and Mary Holloway, sister of John Tartol, a Chairman's Club and current Board Member of Herbalife, among others.
The full version of the video is here and more information can be found at www.FactsAboutHerbalife.com.
The video captures claims by distributors showcasing a range of false medical benefits, ranging from curing asthma, bronchitis, diabetes, and high blood pressure, to migraine and arthritis relief, weight and cellulite loss, and cholesterol reductions. Herbalife distributors are trained, often at company-sponsored events, to make false medical claims in order to lure potential recruits to purchase large quantities of products and to attempt the Herbalife "business opportunity," which we have shown is a scam to separate Herbalife victims from their money.
Herbalife has previously been ordered to stop making these outlandish and fake claims. In 1986, The California State Attorney General and the County of Santa Cruz took Herbalife to court over the company's use of false and misleading medical claims to promote its products and attract new distributors. As a result, the court issued a permanent and binding injunction, which requires that, among other things, Herbalife and its distributors no longer make claims that their products provide a host of unsubstantiated medical benefits, such as eliminating cellulite, curbing appetites while burning calories, and improving cardiovascular health. The California Attorney General has, to date, failed to enforce its own injunction against Herbalife.
A full copy of the California injunction can be found here.
"Herbalife infringes on the responsibility doctors have in the State of California to provide appropriate preventative care for our patients to the highest standard possible. By falsely claiming that Herbalife products are not only benefitting consumers health, but they are also allegedly able to cure chronic diseases such as diabetes, high blood pressure, or even migraines, Herbalife is placing the people in imminent peril. Herbalife must be stopped before they spread more lies and hence hurt people. Stop Herbalife, and let medical providers do their job in ameliorating health disparities," said Dr. Sandra Salazar, a California family physician serving seniors, youth and families from Norwalk and neighboring communities also served by the Cerritos Community College District.
About Pershing Square Capital Management, L.P.
Pershing Square Capital Management, L.P. ("Pershing Square"), based in New York City, is a SEC-registered investment advisor to private investment funds. Pershing Square manages funds that are in the business of trading — buying and selling — securities and other financial instruments. Funds managed by Pershing Square are short the stock of Herbalife Ltd and own put options on the Company. Pershing Square may increase, decrease, dispose of, or change the form of its investment in Herbalife for any or no reason, at any time. Pershing Square may change its views about or its investment positions in Herbalife at any time, for any reason or no reason. Pershing Square may buy, sell, cover or otherwise change the form or substance of its Herbalife investment. Pershing Square disclaims any obligation to notify the market of any such changes. Please see the full Disclaimer appearing on website www.factsaboutherbalife.com.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/video-released-by-pershing-square-capital-management-shows-herbalife-distributors-routinely-make-false-dangerous-and-illegal-medical-claims-to-potential-customers-300009775.html
SOURCE Pershing Square Capital Management, L.P.
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