Herbalife Ltd. HLF
The three reasons
- 1
FTC findings satisfy the Koscot/Omnitrition/Vemma legal test for a pyramid scheme
- 2
'Profitable Retail Sales' rule removes the economic incentive to become a distributor
- 3
Elimination of minimum purchase and inventory-loading rules will collapse the pyramid
Primary demands
- Recognize that the FTC's factual findings constitute a pyramid scheme under Koscot/Omnitrition/Vemma precedents
- Enforce the 'Profitable Retail Sales' compensation rule that removes the incentive to become a distributor
- Work with regulators in 90 other countries to replicate FTC requirements globally
KPIs cited
Pattern membership
Precedents cited
- FTC v. Koscot
- FTC v. Omnitrition
- FTC v. Vemma
Slide gallery ·
Notes
Two-page press release issued the day the FTC announced its Herbalife settlement (July 15, 2016). Pershing Square argues the FTC's factual findings constitute a pyramid scheme under existing case law (Koscot/Omnitrition/Vemma) even though the explicit 'pyramid scheme' label was negotiated out of the settlement. Tonally framed as vindication of the long-running short thesis; no individual signatory. Page 2 is boilerplate plus the disclosure that Pershing Square funds are short HLF and hold put options (no sized stake disclosed). No charts, no SCQA structure, no quantified target price — hence thesis_one_liner/summary/SCQA set to null per press-release guidance. Companion sites cited: factsaboutherbalife.com and herbalifepyramidscheme.com.