Herbalife Ltd. (NYSE:HLF) and recent complaints about the direct-selling company were discussed by Bloomberg’s Duane Stanford in a recent interview on Bloomberg Television.
The interview with the correspondent comes after he wrote about a certain Miguel Calderon, a retired construction worker who is alleging that a Herbalife Ltd. (NYSE:HLF) distributor duped him into spending $30,000 of his life savings to buy weight-management shakes that the company makes. This is the latest in a string of similar complaints made by people against the company and its distributors.
At the start of the interview, Stanford was asked whether this is a legitimate complaint or just another case of someone who just bought too much product from the company. According to Stanford:
“It’s really interesting digging into some of these accusations. We sat down with three people that filed complaints in the Illinois [area against Herbalife]and sort of dug through their story. It was just interesting because you really have this he-said-she-said sort of thing going on at the bottom which is really similar to what we see at the top. Some people say it’s a pyramid scheme, some people say it’s not. These distributors say they lost thousands of dollars buying a lot of weight-loss powder that they ended up not being able to sell. Now exactly why they couldn’t sell that, they say it’s because nobody wanted the product. The distributor who sold it to them or who sponsored them says they just didn’t work hard enough and just didn’t work the program right and frankly shouldn’t have bought that much product in the first place.”
Watch the video below where whether Herbalife Ltd. (NYSE:HLF) is refusing to take back the products was discussed. At a later part, the campaign being made by Bill Ackman against the company was also mentioned.
Herbalife Ltd. (NYSE:HLF) investors include activist investor Carl Icahn’s Icahn Capital Lp which reported, by the end of the first quarter, 17 million shares in the direct-selling company. Another investor in the company is George Soros’ Soros Fund Management which had about 4.9 million shares in Herbalife Ltd. (NYSE:HLF) also by the end of the first quarter of the year.