Unless you can give me your bank account statements from a verifiable banking institution any statement that you will make copies of your checks and mail them out is BS. I can go to Office Max and purchase a computer program and write checks that look real. So tell that BS to the Marines. Henry in South Carolina almost had m believing you and Premier Team International were true work from home offers. However, after learning what you state you sell it turns out to be total BS lies. Herblife products are highly dangerous. I now offer everyone else the rst of the story LADY! I hope to GOD you don't lose anymore children. Read and learn.
Herbalife
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Herbalife, Ltd.
Type Public (NYSE: HLF)
Founded Los Angeles, CA (1980)
Headquarters Los Angeles, CA
Key people Michael O. Johnson, Chief Executive Officer
Brett R. Chapman, General Counsel and Corporate Secretary
Richard P. Goudis, Chief Financial Officer
Y. Steve Henig, Ph.D., Chief Scientific Officer
Industry Nutrition & Skin Care products
Products Weight management, nutritional supplements, personal care
Revenue USD$2.4billion (2008)[1]
Website www.herbalife.com [1]
Herbalife International (NYSE: HLF), founded in 1980, is a company that sells weight-loss, nutrition and skin-care products by multi-level marketing[2], also known as network marketing. It has been the subject of controversy and lawsuits.
Contents [hide]
1 Company history
2 Product overview
2.1 Health Concerns
3 Business methods and controversy
3.1 Crazy Fox commercials
3.2 Litigation
4 Clinical studies
5 Sponsorships
6 Nutrition Advisory Board
7 See also
8 References
9 External links
[edit] Company history
In February 1980, Mark Hughes began selling the original Herbalife weight loss product from the trunk of his car. Hughes often stated that the genesis of his product and program stemmed from the weight loss concerns of his mother, whose death he attributed to an eating disorder and an unhealthy approach to weight loss. The company's slogan -- "Lose weight now. Ask me how?" became a burgeoning call sign for its distributors, who often wore buttons or otherwise adorned their vehicles with the slogan, or posted signs and distributed flyers with the slogan, and a distributor's telephone number. Adopting the multi-level marketing system for distribution and growth, the company attracted thousands of would-be entrepreneurs who sold its products on a door-to-door or word-of-mouth campaign, shunning mainstream commercial distribution in commercial stores. The company promised riches to distributors who remained loyal to its selling and dietary proselytizing. Early efforts to bring in distributors involved conventions, where Hughes would give a keynote address, preceded by testimonials from persons claiming to have realized significant health improvements for significant maladies after embarking on the Herbalife program.
By 1982, Herbalife had reached $2,000,000 in sales and opened a distributorship in Canada, its first outside of the United States. In 1985, the California Attorney General sued the company for allegedly making false claims about the efficacy of its products. The company settled the suit the following year for $850,000 without admitting wrongdoing.[3] In 1986 Herbalife became a publicly traded company via NASDAQ. Independent distributors' personal vehicles could be seen on the street, decorated by decals bearing the mysterious slogan "Make money now, ask me how!". In 1994 Mark Hughes started the Herbalife Family Foundation, a charity dedicated to helping children. The organization receives donations from Herbalife itself as well as individuals within and outside the company. The Herbalife Family Foundation has donated more than $6.5 million to children's causes worldwide. In 1996 Herbalife reached $1,000,000,000 in annual sales.
In 2000, Hughes died at the age of 44 from a drug overdose. The company has continued to grow after his death.
In 2002, Whitney and Co. LLC and Golden Gate Capital acquired Herbalife for $685 million and took the company private.[4]
In April 2003, Michael O. Johnson joined Herbalife as CEO following a 17-year career with The Walt Disney Company, most recently as president of Walt Disney International.[3] On December 16, 2004, the company had an initial public offering on the NYSE of 14,500,000 common shares at $14/share. 2004 net sales were reported as $1.3 billion. In April 2005, the company celebrated its 25th anniversary with a four-day event attended by 35,000 Herbalife Independent Distributors from around the world. In August 2005, Dr. Steve Henig joined the company as Chief Scientific Officer, responsible for product research and development. In 2008, President and COO Greg Probert resigned after it was reported that he had not completed the degree requirements for the MBA he claimed on his resume.[5]
Herbalife Ltd is incorporated in the Cayman Islands and headquartered in Los Angeles, California[6] and employs 3500 worldwide. Products are distributed worldwide through a network that Herbalife claims contains 1.9 million independent distributors in 70 countries.[7]
Herbalife spends less than $2 million per year on research and development.[3]
[edit] Product overview
Herbalife's product offering includes weight-management products such as Formula 1 Nutritional Shake Mix, a soy-based meal-replacement shake and one of the first products introduced by the company. Other categories include targeted nutrition such as heart health, energy and fitness, and skin care.
Proponents claim that the Herbalife strategy is aligned with health industry recommendations for safe weight control, eating a balanced diet, low-energy food with regular exercises, and that their nutritional and weight management line of products facilitate this through macronutrient and micronutrient food formulas.
Herbalife provides testimonials from health professionals as part of their marketing campaign. Some of the products are vegetarian, some are even kosher or halal.
In its annual report (SEC Form 10-K) Herbalife declares that all of its products are manufactured by outside companies, except for a small amount of products manufactured in its own manufacturing facility in China. The major suppliers include NBTY (Nature's Bounty), Fine Foods (Italy), PharmaChem Labs and JB Labs which together account for more than 40% of its product purchases in 2006. [8] In addition Herbalife declared in its annual report 2005 that the Company's research and development is primarily performed by outside consultants and that 2005 Herbalife had not incurred any material R&D costs.
[edit] Health Concerns
Some of the original Herbalife weight loss products contained the active ingredient Ma Huang or Sida cordifolia, two herbs containing ephedrine alkaloids. Adverse reactions involving the company's Thermojetics original green tablets were recorded by the U.S. Food and Drug Administration and Herbalife subsequently stopped using ephedrine in its products in the face of rising insurance premiums.[9][10] The U.S. FDA banned supplements containing ephedra in 2004.[11]
Scientific studies in 2007 by doctors at the University Hospital of Bern in Switzerland and the Liver Unit of the Hadassah-Hebrew University Medical Center in Israel found an association between consumption of Herbalife products and hepatitis.[12][13] In response, the Spanish Ministry of Health issued an alert asking for caution in consuming Herbalife products.[14] Herbalife has stated they are cooperating fully with Spanish authorities.[15]
The Fraud Discovery Institute has reported that laboratory test results of Herbalife products show lead levels in excess of limits established by law in Herbalife's home state of California under Proposition 65.[16][17] Barry Minkow founded the Fraud Discovery Institute after serving a jail term for stock fraud.[18] He has disclosed that since the beginning of his group's investigation he has begun shorting Herbalife stocks to the tune of $50,000 to fund it.[19][20][21] Proposition 65 requires notification of consumers where a product "contains chemicals known to the State of California to cause cancer and birth defects or other reproductive harm." Herbalife has responded, stating that its products meet federal FDA requirements.[22][23] The company states other independent lab tests it has commissioned show that Herbalife products do not exceed the Proposition 65 limits.[19][24]
On the 10th of May 2008 a suit was filed on behalf of a woman who developed lead-related liver complaints that she claims were a reaction to a combination of Herbalife products.[18][25] The suit was filed by lawyer Christopher Grell, cofounder of the Dietary Supplement Safety Committee and an ally of Minkow.[18] On the 17th of June 2008, the suit was expanded to add distributors who had supplied the woman with the Herbalife products, with Grell launching a website to offer persons who believe they were harmed by Herbalife products the chance of redress.[26] In August 2008, Minkow retracted all accusations against Herbalife and removed any mention of the company from his Web site.[27]
[edit] Business methods and controversy
Supporters and merchants involved with Herbalife contend that it is a genuine and profitable multi-level marketing business opportunity. Critics of Herbalife contend that it is a Pyramid scheme[28] and that the company has not made enough effort to curb abuses by individual distributors. Herbalife has consistently denied such allegations and stated that its business model is fully legal.[29] Herbalife is a member of the Direct Selling Association in most countries in which it operates.
In its filings with the U.S. Securities and Exchange Commission (SEC), company management specifically noted problems with inappropriate business practices many years ago, their subsequent long-lasting effects and the need to avoid any repetition. Herbalife's September 2006 quarterly report to the SEC describes a distributor network that is relatively easy to enter and exit, financially, by comparison with those of many other network marketing companies. The company tracks distributor retention by annually "re-qualifying" active distributors; most recently, 41.5% of distributors were still active after twelve months, up from 39.7% a year before. Company management considers the number and retention of distributors a key parameter and tracks it closely in financial reports. As of December 2008, Herbalife has 1.9 million independent distributors in 70 countries. It refers to supervisors who qualified in 69 countries under its traditional marketing plan plus China sales employees collectively as ‘Sales Leaders.' The company had 456,858 supervisors worldwide and 48,236 sales employees in China, for a total of 505,094 sales leaders worldwide.
Herbalife's Scientific Advisory Board is chaired by David Heber, M.D. Ph.D, F.A.C.P., F.A.C.N., who is professor of medicine and public health and the founding director of the Center for Human Nutrition in the Department of Medicine at UCLA. According to a 2004 Forbes article, Dr. Heber joined the board at roughly the same time Herbalife made a $3 million donation to establish the Mark Hughes Cellular & Molecular Nutrition Laboratory at his Center for Human Nutrition, leading to criticism of Heber's actions as an inappropriate conflict of interest.
Louis J. Ignarro, Ph.D., a Nobel Laureate in Medicine and Distinguished Professor of Pharmacology at the UCLA School of Medicine, is also a member of Herbalife's Scientific Advisory Board. Ignarro worked with Herbalife to develop Niteworks, a dietary supplement designed to boost the body's own production of nitric oxide, and later became a member of the company's Scientific Advisory Board. Ignarro endorsed this product in exchange for a royalty agreement reported to have earned his consulting firm over $1 million in the first 12 months. Ignarro also promoted Niteworks' ingredients in the prestigious Proceedings of the National Academy of Sciences, without disclosing his financial interest to the publication. After Ignarro's ties to Herbalife were revealed, the journal issued a correction to the article, citing Ignarro's undisclosed "conflict of interest". UCLA conducted its own investigation and determined that Ignarro did not act improperly as all the research was done in Italy and no research funds came from UCLA.[citation needed] Therefore, it was not legally necessary for him to disclose anything. Ignarro also stars as the primary speaker in a one-hour Herbalife promotional video for Niteworks.
[edit] Crazy Fox commercials
As of April 2008, a series of commercials featuring a large red animated fox advertising home-based business opportunities have been running on US television stations. The advertisements typically feature a series of testimonials from actors playing individuals who have made sums of money between $5,000 USD and $15,000 USD per month as a result of participating in an undescribed business program. The viewer is advised to visit a website of the format crazyfox(arbitrary number).com or (arbitrary number)crazyfox.com; all of these domains redirect to the same site at crazyfox.com. The site contains a form where the user can provide their personal information and pay a fee to receive a "success kit"; the kit is an hour-long video with no information as to how the individual will earn money. [30]
[edit] Litigation
A 2004 settlement resolved a class action suit on behalf of 8700 former and current distributors that accused the company and distributors of "essentially running a pyramid scheme."[31] A total of $6 million was to be paid out, with defendants not admitting guilt.
In a routine financial report filed with the U.S. Securities and Exchange Commission in mid-2006, Herbalife management identified two pending lawsuits significant enough to warrant notifiying their investors:
In a California class action suit, Minton v. Herbalife International, et al., the plaintiff is "challenging the marketing practices of certain Herbalife International independent distributors and Herbalife International under various state laws prohibiting "endless chain schemes", insufficient disclosure in assisted marketing plans, unfair and deceptive business practices, and fraud and deceit".
In a West Virginia class action suit, Mey v. Herbalife International, Inc., et al., the plaintiffs allege that some "telemarketing practices of certain Herbalife International distributors violate the Telephone Consumer Protection Act, or TCPA, and seeks to hold Herbalife International vicariously liable for the practices of these distributors. More specifically, the plaintiffs' complaint alleges that several of Herbalife International's distributors used pre-recorded telephone messages and autodialers to contact prospective customers in violation of the TCPA's prohibition of such practices".
Herbalife managements insisted they have meritorious defences in both cases and that in the West Virginia case, any such distributor actions also went against Herbalife's own policies. Management also contends that any adverse legal outcomes Herbalife might suffer would not significantly affect their financial condition, particularly since they have already set aside an amount that they "believe represents the likely outcome of the resolution of these disputes".
Mey v. Herbalife International, Inc., et al. was resolved with Herbalife and its distributors paying $7 million into a fund for class members part of the suit.[32] Herbalife International did not acknowledge wrongdoing, or admit culpability for the actions of its distributors.
Bunnpoff v. Herbalife International, Inc., et al. was resolved with Herbalife and its distributors paying $13 million dollars to members of the class action suit. Herbalife International did not acknowledge wrongdoing, or admit culpability for the actions of its distributors.
Swoboda v. Herbalife International, Inc., et al. was resolved with Herbalife and its distributors paying $24 million dollars to members of the class action suit. Herbalife International did not acknowledge wrongdoing, or admit culpability for the actions of its distributors.
[edit] Clinical studies
Three clinical studies have been completed that show the effectiveness of Formula 1.
The studies, conducted at University of California, Los Angeles; University of Ulm, Germany; and Seoul University National Hospital, Korea, showed that using Formula 1 meal replacements twice a day led to effective weight loss. Individuals in the studies who had certain weight-related conditions showed improvement in those conditions as a result of using Formula 1 shakes for weight loss.
The studies in Germany and Korea were conducted by members of Herbalife's Nutrition Advisory Board, Drs. Marion Flechtner-Mors and Belong Cho, respectively. The results of the UCLA study were published in Nutrition Journal (August 2008); while the Korea results appeared in The International Journal of Clinical Practice (February 2009). Dr. Flechtner-Mors presented in October 2008 at the annual meeting of The Obesity Society in Phoenix, Arizona and at the European Congress of Obesity in Geneva, Switzerland.
[edit] Sponsorships
Herbalife sponsors a variety of fitness and sporting events around the world. In 2009, it sponsored IndyCar Drivers Townsend Bell and E. J. Viso in the Indy 500[33]. [34] Bell took fourth place in the race[35]
[edit] Nutrition Advisory Board
Herbalife states that its Nutrition Advisory Board consists of "leading experts in the fields of nutrition and health who help educate and train our independent Distributors on the principles of nutrition, physical activity and healthy lifestyle."[36]
David Heber, M.D., Ph.D., F.A.C.P., F.A.C.N. Director of the Center for Human Nutrition at UCLA.[37]
Louis Ignarro, Ph.D.
Luigi Gratton, M.D., M.P.H.
Alexey Borisov, M.D.
Joaquim Caetano, M.D.
Marco DeAngelis, M.D.
Jorge Dominguez, M.D.
Marion Flechtner-Mors, Ph.D.
Julian Alvarez Garcia, M.D.
Lazlo Halmy, M.D., Ph.D., DMSci
Shih-Yi Huang, Ph.D.
Linong Ji, M.D.
Patricio Kenny, M.D.
Rocio Medina, M.D.
Anoop Misra, M.D.
Alla Pogozheva, M.D.
Ralph Rogers, M.D.
Nikolaos Sitaras, M.D.
Jean de la Tullaye, M.D.
Nataniel Viuniski, M.D.
Yoshio Yoshimoto, M.D.
[edit] See also
Direct selling
Multi-level marketing
[edit] References
^ Herbalife 2008 Annual Report
^ Aegon in Missouri Provokes Regulators Finding Sales Deceptions By Seth Lubove (2008/5/28) Bloomberg.com
^ a b c "Nobel Prize Winner Didn't Disclose Herbalife Contract" Bloomberg News report
^ Herbalife acquisition completed. (Industry News).(Whitney and Co. and Golden Gate Capital acquire Herbalife International)(Brief Article) | Nutraceuticals World | Find Article...
^ Ethical flap forces exit of president: Herbalife executive Probert credited with company's growth.(HEALTH CARE)(Gregory Probert) | Article from Los Angeles Business Journal | ...
^ Herbalife calls buyout bids too low
^ About Herbalife: Herbalife
^ SEC Filing Form 10-K, annual report 2006 Herbalife
^ Herbalife Ltd. (2005-03-14), "Form 10-K", United States Securities and Exchange Commission: page 15, http://www.sec.gov/Archives/edgar/data/1180262/000104746905006359/a2153305z10-k.htm#05WLA1071_1
^ Evans, D. (2002-04-11). "Herbalife, Other Ephedra Marketers Face Soaring Insurance Rates". Bloomberg L.P..
^ "Sales of Supplements Containing Ephedrine Alkaloids (Ephedra) Prohibited". U.S. Food and Drug Administration. http://www.fda.gov/oc/initiatives/ephedra/february2004/.
^ Association between consumption of Herbalife nutritional supplements and acute hepatotoxicity.
^ Herbal does not mean innocuous: ten cases of severe hepatotoxicity associated with dietary supplements from Herbalife products.
^ Spanish Ministry of Health issues precaution on Herbalife brand
^ Herbalife Responds to Spain's Ministry of Health Alert
^ Herbalife lead levels draw attention - Regulation - NutraIngredientsUSA - Food, Beverage & Nutrition - Publications - Decision News Media
^ Second, FDA Registered, Independent Lab affirms Higher Lead Levels in Herbalife Product, reports Fraud Discovery Institute, Children's Herbalife Products contain Materially Excessive Lead Levels affirmed in New Lab Results, Expert reports to Fraud Discovery Institute, New Tests reveal 904 Percent More Lead in Herbalife, NuSkin Nutritional Shakes than Competitors, reports Fraud Discovery Institute
^ a b c Los Angeles Business Journal Online - business news and information for Los Angeles California
^ a b Herbalife rebuffs lead allegations
^ ref.doc
^ UPDATE 1-Herbalife rebuts lead claims, says no safety issues | Markets | Markets News | Reuters
^ FOXNews.com - Group Says 6 Dietary Supplements Contain Dangerous Levels of Lead - Health News | Current Health News | Medical News
^ Herbalife Tangles with Prop 65, Testing Company
^ More lead testing confirms product safety, says Herbalife - Industry - NutraIngredientsUSA - Food, Beverage & Nutrition - Publications - Decision News Media
^ Herbalife Sued for Negligence and Fraud by Victim
^ http://money.cnn.com/news/newsfeeds/articles/prnewswire/200806171030PR_NEWS_USPR_____AQTU079.htm
^ http://www.reuters.com/article/marketsNews/idINBNG1688320080822?rpc=44
^ "Herbalife Sets More Layoffs". The New York Times. 1985-05-30. http://query.nytimes.com/gst/fullpage.html?res=9405E2D91739F933A05756C0A963948260.
^ Statement from Nordic Herbalife Director denying toxicity of Herbalife products, pyramid marketing scheme
^ Work At Home: The Real Deal - NewsChannel 9 WSYR
^ http://findarticles.com/p/articles/mi_m5072/is_25_26/ai_n6100846
^ HERBALIFE LTD. - HLF Annual Report (10-K) Item 3. LEGAL PROCEEDINGS
^ http://www.indystar.com/apps/pbcs.dll/article?AID=2009905170404
^ http://www.hvmracing.com
^ http://www.latimes.com/sports/la-sp-indy-notes25-2009may25,0,4127594.story
^ Advisory Boards - Science: Herbalife
^ http://research.mednet.ucla.edu/institution/personnel?personnel_id=8464
Notes
"Nutritional Supplement Seller Feeling Much More Fit These Days". Investor's Business Daily. http://www.investors.com/editorial/IBDArticles.asp?artsec=7&issue=20060616. Retrieved on 2006-07-06.
"NYSE Group, Inc. Herbalife Ltd". NYSE Group, Inc. http://www.nyse.com/about/listed/hlf.html. Retrieved on 2006-03-14.
"Sales of Supplements Containing Ephedrine Alkaloids (Ephedra) Prohibited". Food and Drug Administration Home Page. http://www.fda.gov/oc/initiatives/ephedra/february2004/. Retrieved on 2006-03-14.
Herbalife (2006-01-09). AEG and Herbalife Announce Amgen Tour of California Sponsorship; Agreement Extends Herbalife Partnership as the Official Nutrition Company for Professional Bicycle Race. Press release. http://ir.herbalife.com/ReleaseDetail.cfm?ReleaseID=183568&PrevSect=PR. Retrieved on 2006-03-14.
Gunn, Eileen (February 27, 2006). "Racing to the top? Try the triathlon". U.S. News & World Report. http://www.usnews.com/usnews/biztech/articles/060227/27eetriathlon.htm. Retrieved on 2006-03-14.
[edit] External links
Official website
Herbalife Family Foundations site
Company profile by MarketWatch
Herbalife Ltd.'s financial reports - Corporate disclosure and financial reports filed with the U.S. Securities and Exchange Commission
Washington Post article "Nitric Oxide Now -- Ask Me How: Some Find Nobel Laureate's Alliance With Supplement Marketer Hard to Swallow", Washington Post, October 7, 2003
Slate.com article "Make money now, ask me how! :Was Herbalife founder Mark Hughes a showy swindler or a dot-com deity?"
Brain, Child article "Seller Beware", Brain, Child, Summer 2008
Herbalife Ltd. (HLF) company's profile - Yahoo Finance
Retrieved from "http://en.wikipedia.org/wiki/Herbalife"
Categories: Companies listed on the New York Stock Exchange | Multi-level marketing | Companies based in Los Angeles, California | Companies established in 1980 | Nutrition
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