Herbalife International is a multi-level marketing company that sells nutrition, weight management and skin-care products. The company was founded in 1980, and it employs around 6,200 people worldwide. Herbalife reported net sales of US$4.072 billion in 2012, an 18% increase over 2011, and net income of $477.19 million, a 16% increase over 2011.Incorporated in the Cayman Islands, its corporate headquarters are in Los Angeles, California, United States.
The company distributes its products in 88 countries (as of December 2012) through a network of approximately 3.2 million independent distributors, some of whom earn profit on product sales and additional commission from a multi-level marketing (MLM) compensation structure.
The Commercial Court in Brussels, Belgium, has ruled the company to be an illegal pyramid scheme, a decision Herbalife is appealing. The company has been criticized by, among others, hedge fund manager Bill Ackman of Pershing Square Capital, who claimed that Herbalife operates a "sophisticated pyramid scheme" after taking a $1-billion short position in Herbalife stock. The company denies the allegations.
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