Herbalife complaints and lawsuit information can be found in abundance across the internet.
We will attempt to summarize what Herbalife is, what the company does and why you should be aware of the many concerns, complaints and legal issues that have been attached to the company and it’s associates.
Herbalife is a global nutrition, weight loss and skin health multilevel marketing company.
The company became publicly held in 1982, incorporated in the Cayman Islands and it’s ticker on the NYSE is HLF.
Herbalife was founded in 1980 by Mark Hughes, after his mother’s premature death associated with an eating disorder and unhealthy approach to weight loss.
Mark’s goal was to change nutritional habits all over the world.
The main product of the company was a protein shake designed to help people manage their weight.
A multilevel marketing model was adopted to spread the word about the product, it’s benefits and allowed distributors of the products to earn an income.
The company slogan became “Lose Weight Now, Ask Me How.” The slogan was adopted as a marketing theme used by distributors of Herbalife.
In 1985, the California Attorney General sued the company for making inflated claims about the efficacy of 9 of the company’s products. The suit was settled out of court to the tune of $850K.
In the early going, the Heralife products contained a product known as Ma Huang which is a Chinese herb containing Ephedra. Ephedra is linked to increased risk of systemic hypertension and stroke. In 2004 the FDA banned substances containing Ephedra.
In 2007 and 2011 doctors in Israel, Spain, Switzerland, Iceland, Argentina and the United States discovered numerous cases of hepatitis and liver disease associated with the consumption of Herbalife products.
From a business perspective, In 2004, a class action suit was settled on behalf of 8,700 former and current distributors that accused the company and distributors of “essentially running a pyramid scheme.” A total of $6 million was to be paid out, with Herbalife not admitting guilt.
There have been additional law suits settled by Herbalife in West Virginia and California citing deceptive advertising practices at the core of these Herbalife complaints.
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