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From: StockDung1/12/2017 7:29:35 AM
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Herbalife pays up after being accused of pyramid scheme

By Carleton English
January 10, 2017 | 11:49pm | Updated

Michael O. Johnson, founder of Herbalife.Getty Images





Checks are in the mail for nearly 350,000 people who said they lost money trying to run an Herbalife business, the Federal Trade Commission said Tuesday.

The checks are being sent to distributors who paid at least $1,000 to Herbalife between 2009 and 2015 and “got little or nothing back from the company.”

Most of the checks are for between $100 and $500.

In July, the company settled with the FTC to the tune of $200 million, ending a controversy-laden two-year probe into whether it was a pyramid scheme.

Even as the money flowed to victims, critics lashed out at the FTC.

Some Herbalife distributors who recruited other members into the alleged pyramid scheme will not be getting checks even though they themselves were also victims, Julie Contreras of the League of United Latin American Citizens, an advocacy group critical of Herbalife, told The Post.

“Many of the people who have been victimized [by Herbalife] have been revictimized,” Contreras said.

The FTC is providing on their Web site a phone number for distributors who feel they deserve compensation but didn’t get a check.



FILED UNDER CLASS-ACTION LAWSUITS , FEDERAL TRADE COMMISSION , HERBALIFE , PYRAMID SCHEMES
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