STEVENSON, Md., April 16, 2014 (GLOBE NEWSWIRE) -- The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Herbalife Ltd. ("Herbalife" or the "Company") (NYSE:HLF) securities during the period between May 4, 2010 and April 11, 2014, inclusive (the "Class Period").
If you have suffered a loss from investment in Herbalife securities purchased on or after May 4, 2010 and held through the revelation of negative information during and/or at the end of the Class Period, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or financial obligation, click here: http://www.browerpiven.com/securitiesfraudcases.html.
You may also request more information by contacting Brower Piven either by email at hoffman@browerpiven.com or by telephone at (410) 415-6616. Attorneys at Brower Piven together have more than a century of experience litigating securities and other class action cases.
No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than June 13, 2014 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Company units during the Class Period.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants' failure to disclose during the Class Period that the Company'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. According to the complaint, following the December 19, 2012, CNBC report that Bill Ackman ("Ackman"), Founder and Chief Executive Officer of Pershing Square Capital Management, L.P. ("Pershing") considers Herbalife to be a pyramid scheme after spending a year researching the Company's fundamentals, the December 20, 2012, presentation concerning Herbalife at the Sohn Investment Conference where Ackman affirmed his conclusion that Herbalife is a pyramid scheme as its distributors make more money by recruiting other distributors than selling the Company's products to the general public and that since the founding of the Company, approximately 1.9 million distributors have failed to make any money from selling Herbalife products, the January 23, 2014 letters sent by U.S. Senator Edward J. Markey of Massachusetts to federal regulators, including the SEC and the FTC, urging them to investigate Herbalife, and the April 11, 2014, Financial Times report that the United States Department of Justice and Federal Bureau of Investigation had opened a criminal probe of Herbalife, the value of Herbalife shares declined significantly.
If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.