Top Menu

Next Up For Herbalife – The Plaintiffs’ Lawyers

Greedy Lawyers

It is as predictable as the sun rising in the east and dogs barking.

In the aftermath of a Foreign Corrupt Practices Act enforcement action (or mere instances of FCPA scrutiny), plaintiffs’ lawyers representing shareholders on a contingent fee basis announce “investigations” or file securities fraud claims against the company and/or certain officers or directors. Such FCPA-related claims are frequently dismissed, but the “investigations” continue and claims continue to be filed.

Last week, Herbalife resolved a $123 million FCPA enforcement action (see prior posts here and here) largely in connection with obtaining a direct selling license in China. The conduct at issue generally focused on two individuals associated with Herbalife China who – in the words of the government – engaged in variety of deceptive conduct including circumventing Herbalife’s internal controls, submitting fraudulent reimbursement requests, and concealing their fraud from Herbalife’s Internal Audit department.

Since the August 28th enforcement action, the following has happened.

Late in the afternoon of August 28th, Levi & Korsinsky announced that “it has commenced an investigation of Herbalife Nutrition Ltd. concerning possible violations of federal securities laws.”

On August 31st, Bronstein, Gewirtz & Grossman, LLC announced that it is ” investigating potential claims on behalf of purchasers of Herbalife Nutrition Ltd. […] The investigation concerns whether Herbalife and certain of its officers and/or directors have violated federal securities laws.

Also on August 31st, Bragar Eagel & Squire, P.C. announced that it is “investigating potential claims against Herbalife Nutrition Ltd. on behalf of Herbalife stockholders. Our investigation concerns whether Herbalife has violated the federal securities laws and/or engaged in other unlawful business practices.”

On September 3rd, Pomerantz LLP announced that it is ” investigating claims on behalf of investors of Herbalife” concerning “whether Herbalife and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.”

Powered by WordPress. Designed by WooThemes