Herbalife shares face criminal charges (NYSE: HLF)



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The NYSE has suspended trading Herbalife Nutrition (HLF -12.0%) due to the volatility of reports that U.S. prosecutors indicted him in a corruption-related criminal case in China.

Development….

Update: In May, the company revealed that it had reached a tentative agreement with the SEC and the US Department of Justice (DOJ) to settle their investigation into its compliance with the Overseas Corrupt Practices Act by China during the period 2006-2016. included a three-year deferred prosecution agreement and an aggregate fine + accrued interest of $ 123 million for which it set aside for (T2 10-Q, page 21) (previously disclosed).

In September 2019, he agreed to pay $ 20 million to settle the SEC’s fees following false and misleading statements related to his business model in China.

Hedge fund honcho Bill Ackman had a substantial short position in the company which he left in 2018 after failing to convince authorities the company was operating an illegal pyramid scheme.

Update: Decreasing shares 5% when trade resumes.

Update: The company settled the case for $ 122 million, including a criminal penalty of $ 55 million and $ 67 million payable to the SEC. He admitted to “knowingly and willfully” conspiring with others to provide corrupt payments and benefits to Chinese government officials. Declining shares 2% on more than a 7x volume increase.



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