Boston, MA 10/07/2014 (wallstreetpr) – Herbalife Ltd. (NYSE:HLF) boosted both its investors’ morale and its stock price on Monday after it announced the appointment of Ex-FTC Commissioner, Pamela Jones Harbour. She will look into the newly created profile of Senior Vice President for global member compliance and privacy. Through this gesture, the company is essentially trying to soothe anguished investors, who have been concerned over the company’s practices of overseeing its sales team.
Illegal Business
Herbalife Ltd. (NYSE:HLF) has held the responsibility to monitor training as well as mentoring programs to Harbour for its more than 4 million distributors. Also, Harbour would ensure that a robust and consistent monitoring and enforcement process is in place for the company’s sales team. Following the press release, the shares of the company surged by more than 6% to close at $47.30. This move should help the company put break on a series of allegations that it faced in the last two years.
The problem for Herbalife Ltd. (NYSE:HLF) started back in December 2012, when Bill Ackman, a prominent hedge fund manager, slapped accusations on the company. He said that the company is working like a pyramid scheme, thereby, hurting the small distributors by alluring them for a hefty income. However, those minority distributors find themselves cheated at the end as they fail to generate income as promised. Though Herbalife Ltd. (NYSE:HLF) counter replied these allegations stating that its model is legal, the Federal Trade Commission appeared to be skeptical about the same that led to the initiation of an investigation against the company.
Harbour’s Personal Experience
So Harbour, who had been with the FTC from 2003 through 2010, said that she has been a consumer of Herbalife Ltd. (NYSE:HLF)’s products since the last ten years and has full faith in the company’s business. The statement sounds positive and comes as a big relief to the company and its investors, with expectations that it will sail smoothly again.
