San Diego, CA -- (ReleaseWire) -- 05/13/2014 -- 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 over alleged violations of Federal Securities Laws by Herbalife Ltd. (NYSE:HLF in connection with certain allegedly false and misleading statements made between May 4, 2010 and April 11, 2014.
Investors who purchased shares of Herbalife Ltd. (NYSE:HLF) have certain options and for certain investors are short and strict deadlines running. Deadline: June 13, 2014. NYSE:HLF investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
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'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.
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. Shares of Herbalife Ltd. (NYSE:HLF) declined from $61.02 per share to $51.54 per share on April 11, 2014.
On May 9, 2014, NYSE:HLF shares closed at $61.70 per share.
Those who purchased shares of Herbalife Ltd. (NYSE:HLF) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego