SEC Opens Herbalife Probe Following Pyramid Scheme Barb

Law360, New York (January 9, 2013, 8:42 PM EST) -- The U.S. Securities and Exchange Commission reportedly opened an investigation into Herbalife Ltd. on Wednesday, just hours after the nutritional supplement maker sold a significant minority stake to a New York hedge fund whose rival, Pershing Square Capital Management LP, has accused Herbalife of running a pyramid scheme.

News of the investigation, first reported by the Wall Street Journal, capped off what was otherwise a good day for Herbalife, which saw its stock value gain more than 4 percent on the announcement that Pershing rival Third...
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