Herbalife Overstated Growth in Active New Members for 2015
- 8 years ago
Herbalife Ltd., the nutrition company under federal investigation for allegations of fostering a pyramid scheme, said it overstated the growth of new customers and distributors last year because of database errors.
The shares slumped in early trading.
A metric called active new members increased 3.2 percent worldwide in the fourth quarter from a year earlier, not the 16.7 percent cited on a Feb. 25 conference call, the Los Angeles-based company said in a regulatory filing Thursday.
U.S. active new members increased 30.7 percent, not the 71 percent mentioned on the call, Herbalife said.
Those were among more than two dozen instances of misstated statistics, according to the filing.
The shares slumped in early trading.
A metric called active new members increased 3.2 percent worldwide in the fourth quarter from a year earlier, not the 16.7 percent cited on a Feb. 25 conference call, the Los Angeles-based company said in a regulatory filing Thursday.
U.S. active new members increased 30.7 percent, not the 71 percent mentioned on the call, Herbalife said.
Those were among more than two dozen instances of misstated statistics, according to the filing.