date:Jul 24, 2014
n nutrition clubs, which, Herbalife says, are key to getting people to use its products daily. Ackman said that the clubs are a front for an illegal recruiting scheme, designed to push large purchases of unsellable weight-loss powder. The sales enrich Herbalife and top distributors while defrauding mostly poor Latinos, he said.
Outlining the findings of a Pershing Square-funded investigation, Ackman claimed that the company uses the promise of club ownership to target the poor through mandatory