NEW YORK–(BUSINESS WIRE)–Pershing Square Capital Management, L.P. (“Pershing Square”) today released the 14th in a series of videos showing that Herbalife continues to make false and misleading claims about its fraudulent business opportunity to entice new recruits into its pyramid scheme. The videos are available at www.FactsAboutHerbalife.com.
Today’s video features Herbalife distributors Nick Fevola and Tiffany Malichis speaking at a training event that was posted to YouTube in 2015. Mr. Fevola claims:
“Over two years part-time, I was able to completely get myself out of debt. And that was a significant amount of money, let me just say that, so that was huge. This month, I’ll make – right now, it’s already over $2,000 this month, and that’s part time … so I went from like literally stressed out between the jobs, not knowing where the next check was going to come from, to now it feels like free money. … All you got to do is keep coming back to the trainings … and you’ll get whatever you want.”
Despite his misleading claims, Mr. Fevola has been promoted by Herbalife as a role model to other distributors. The company even sent him to Washington D.C. in May 2016 to speak to members of Congress about Herbalife.
Herbalife’s compensation plan incentivizes recruiting which fosters misleading and fraudulent distributor behavior. Herbalife remains a pernicious pyramid scheme in which 99% of distributors earn less than minimum wage and 86% earn $0 from the company.
A company is deemed a pyramid scheme if the participants make money primarily from recruiting rather than sales to actual customers.
To watch the videos and learn more about Herbalife visit: www.FactsAboutHerbalife.com.
About Pershing Square Capital Management, L.P.
Pershing Square Capital Management, L.P. (“Pershing Square”), based in New York City, is a SEC-registered investment advisor to investment funds. Pershing Square manages funds that are in the business of trading — buying and selling — securities and other financial instruments. Funds managed by Pershing Square are short the stock of Herbalife Ltd. and own put options on the company. Pershing Square may increase, decrease, dispose of, or change the size or form of its investment in Herbalife for any or no reason, at any time. Pershing Square may change its views about or its investment positions in Herbalife at any time, for any reason or no reason. Pershing Square may buy, sell, cover or otherwise change the form or substance of its Herbalife investment. Pershing Square disclaims any obligation to notify the market of any such changes. Please see the full Disclaimer appearing on websitewww.factsaboutherbalife.com and www.herbalifepyramidscheme.com.
For Pershing Square Capital Management, L.P.
Fran McGill, 212-909-2455
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