Lawsuit Overview
November 24, 2015 - The court granted defendants' motion to dismiss with prejudice.
September 28, 2015 - Defendants filed a motion to dismiss.
August 27, 2015 - The lead plaintiff filed a third amended complaint.
July 28, 2015 - The court granted defendants' motion to dismiss.
June 8, 2015 - Defendants filed a motion to dismiss.
May 8, 2015 - The lead plaintiff filed an amended complaint on behalf of investors who purchased Herbalife LTD (NYSE: HLF) common shares between February 23, 2011 and March 10, 2014. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between February 23, 2011 and March 10, 2014.
March 16, 2015 - The court granted the defendants' motion to dismiss.
November 4, 2014 - The defendants filed a motion to dismiss.
September 18, 2014 - The lead plaintiff filed an amended complaint on behalf of investors who purchased Herbalife Ltd (NYSE: HLF) common shares between February 23, 2011 and July 29, 2014. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between February 23, 2011 and July 29, 2014.
July 30, 2014 - The lead plaintiff and counsel were appointed.
June 14, 2014 - Lead plaintiff motions were filed.
April 14, 2014 - An investor who purchased shares of Herbalife LTD (NYSE: HLF) filed a lawsuit in the U.S. District Court for the Central District of California against Herbalife LTD over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between May 4, 2010 and April 11, 2014.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Herbalife LTD (NYSE: HLF) between May 4, 2010 and April 11, 2014, that Herbalife LTD and certain of its officers and directors violated Federal Securities Laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff claims that defendants made allegedly false and/or misleading statements and/or failed to disclose that Herbalife LTD’s operations were based on a pyramid scheme whereby its distributors generate revenue by recruiting other distributors rather than selling Herbalife LTD's diet and nutritional products to the general public, that Herbalife LTD engaged in deceptive trade practices where it unduly pressured its members to purchase more products to resell as one of its distributors , and that as a result of the above, Herbalife LTD's financial statements were allegedly materially false and misleading at all relevant times.
Herbalife LTD reported that its annual Total Revenue rose from over $2.73 billion in 2010 to over $4.82 billion in 2013 and that its respective Net Income increased from $292.88 million to $527.52 million.
Shares of Herbalife LTD (NYSE: HLF) grew from $27.27 per share in late 2012 to as high as $81.81 per share in January 2014.
In late January 2014 Massachusetts Senator Edward Markey was asking for more information about the business practices of Herbalife LTD Shares of Herbalife LTD (NYSE: HLF) declined from over $81 per share in mid-January 2014 to as low as under $50 in March 2014.
On April 11, 2014, an article was published that said that the United States Department of Justice and Federal Bureau of Investigation had opened a criminal probe of Herbalife LTD.
Shares of Herbalife LTD (NYSE: HLF) declined from $61.02 per share to $51.54 per share on April 11, 2014.
On April 15, 2014, Herbalife LTD (NYSE: HLF) shares closed at $54.83 per share.