Shares of Herbalife (HLF) plunged nearly 15% today after reports that the FBI and Justice Department are investigating the multi-level seller.
CNBC has the details:
The US Department of Justice and the FBI are investigating Herbalife, the multi-level marketing company that hedge fund manager Bill Ackman has alleged is a pyramid scheme, according to people familiar with the matter.
The criminal investigation by the FBI and US attorney’s office in Manhattan raises the stakes for Herbalife, which is already facing civil inquiries from multiple government agencies that are looking into the Los Angeles-based company and its associated network of independent distributors.
The inquiry may not lead to any charges. Herbalife has not been accused of any wrongdoing.
Herbalife told CNBC that it had no knowledge of an investigation.
Shares of Herbalife fell 14% to $51.48, while Nu Skin (NUS) dropped 3.6% to $79.46 and Usana Health Sciences (USNA) declined 8.1% to $72.90.
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