Also in this playlist...
This transcript is automatically generated
Start right off the -- that you provide you wouldn't you CE OMR got -- provided a detailed rebuttal of of mr.
Iraq -- claims that you guys are pyramid scheme this scheme essentially a fraud.
He has claimed that you guys did not invite him to the -- so we -- children asking questions directly is that true.
Absolutely -- trip to best of our knowledge nobody identifying themselves from pershing square applied to a to attend -- -- okay we should point out that he's.
When he told me and maybe I wrote it down wrong I know -- scuba diving -- I think he said -- I thought but I don't know if you could -- would -- Burma but sounds like a place we can send some of your -- half of PP have dated due to -- I think that you provided a detailed rebuttal of what he had to say.
I guess what happened to the stock today was down fairly significantly at first came back a little bit but isn't the market.
Still dubious about your business model I mean it it was kind of striking that the -- investor day.
Where it was a promotional day for you guys session should the stock was down.
We we don't read anything into that Charlie I mean here's the reality reality is the stock is back dramatically.
Since the decline following the pershing square presentation.
-- today we believe that people -- very compelling.
And an assertive response to to the pershing square -- we now view.
But we believe is -- gonna take some time because people have to assimilate the information and then I think we'll see the true market's reaction well you you've said Morris stated that you're you're CEO it mr.
Johnson is said Michael Johnson says worst of misrepresentation.
He said manipulation he said that they that Blackmun is manipulating stock what's.
Let's be honest here you you brought in David -- Famed attorney.
Sources -- telling us -- pay them a lot of money will be -- eight figure retainer.
-- you can assume.
He's not right -- to comment on that's I got actually has I don't know for sure what I can tell you this Charlie we're reviewing every option.
That's available to us and so that's -- -- to say at this time.
What you bringing though David voice fortune -- and so.
So you know ahead of like -- a -- that you always put the best athletes on the field.
That's it -- philosophies relates to a doctor's towards scientists.
You know we have got to do it now Nobel -- when we have got to the practice of frankly.
-- doesn't think velocity if -- -- out of strong -- -- -- legal team and -- find the best not to look at what he's a litigator he's not he's not a guy that in the want to talk theory about legal about pyramid scheme well.
It's valid observation.
So when when do you think we can expect.
Not prepared to comment -- -- -- understand you asking the question but please understand from our perspective.
This is something that would that obviously we're looking at a range of options okay okay okay -- The New York Post had a pretty interesting story -- but damn low big time investor by a chunk of -- firm.
-- and -- stock for voice of confidence given what -- mr.
act insane but also said that Carl Icahn.
Is in there as well is that true.
So we don't comment and individual investors obviously we're very happy that -- -- has has chosen.
And we believe you don't have chosen the right side we're always welcome.
That are interest is -- long term an understanding about Herbalife.
But we never comment about other and individual investors -- -- they choose to make themselves down okay.
Without commenting on whether he invested has he contacted -- Again it's not something I'm prepared to comment -- -- tonight.
No comment okay that's that's not that's a non denial denial I guess it's that you did that night but anyway it will move on from there.
You said today -- arguably mr.
Johnson said today that the company would answer all questions posed about it in the coming days.
-- Iraq we came out today and said he's gonna pose some questions.
You plan to answer his question.
You know depends on the question I'm -- at this stage we believe that we have addressed in the very comprehensive and decisively the questions have been raised.
But were committed to total transparency.
And so we don't propose to go back tit for tat because hit with him with -- with anybody frankly.
But here's what we do bulletin investigate and open a legitimate question finally any legitimate questions absolutely -- -- answer because remember our commitment to listen to his two total transparency.
So if there is a question.
That we believe it raises any issue whatsoever that we believe has -- than absolutely.
From people understanding our company our products our business model right so we will answer any and all questions they've waited there wouldn't be who you to answer his questions -- -- -- -- happy to answer the question what -- gentlemen you're gonna answer.
With the enhancement providing we believe that it's not something we've answered.
Before and the foreign before I mean for example that this issue customers -- Qaeda network Charlie this is a complete red Herring.
Absolutely says there's no customers outside did you -- nonsense.
That's why we we have numerous data points to validate that we have a significant number of customers outside -- -- -- -- network.
Not that it matters from a -- -- perspective.
The because we believe you know something if this question their lets answer but even research showed -- five million customers and yet.
He still racist but let's let's get to some it.
He says 93%.
Is that is that true so here's the situation and and we recognized by the way.
And -- than we've learned from this is the fact that.
We need to do something to help educate people right because when people have -- the term distributor -- -- understandable the they would think oh that is somebody who distributes Herbalife right products.
The reality is that the vast majority.
-- our distributors.
Our our customers who decided to become a distributor in order for 25 teaching -- distributors -- customers.
Absolute he's getting him confused correct at very at the very least.
You know something.
-- the legal research showed that 73%.
Of the customers of a -- poker actually a really discount -- discount -- he's also saying he's.
That the majority of -- distributors earned less than 8000 dollars a year.
Is that true.
So here's what he's looking at actually so he's looking at our stick that gross compensation because they were totally transparent company right but out on the Internet -- -- compensation right.
But here's what and if you look at that state of what it says since this.
This only represented payments that the company makes to the street.
What that is not included is the retail profit that distributors making under -- sales -- just keeping -- by the distributor and even that -- -- up with 25% -- if I've got ten customers I'm actually -- hundred dollar for the product with a thousand dollars.
I'm earning 250 don't break.
That is not included -- that statement -- conference where he also says -- distributors.
I have very high turnover rate some like 50%.
Are -- those -- true.
So what I -- sales -- level we actually we had a term but by the way but to let my give credence to his claim that it it.
A much and it certainly but it it it it's Chris is claiming his appearance -- -- your.
Which you need to do to generate these earnings especially at the top that's on the sales leaders and leaders point.
Is to turn them over and get more that is the very essence of a pyramid scheme so -- not for this reason and this is one of the things that we showed today.
The key issue in in a company in terms of that one of the issues and determining legitimacy.
He's -- driving the revenue it's.
-- you're absolutely right Charlie -- the bulk of our revenue was coming from what -- we would call qualification right volume of qualification of those sales leader in.
An absentee quite that would be an -- -- that perhaps is a question mark right but here's what -- -- numbers show.
With the numbers showed that 73%.
Of our sales based on volume.
-- absolutely nothing to do with qualification volume that is the key point and that's the point and unfortunately the strike me as you look at we know.
Doesn't this court doesn't your company I'm not saying it's a pyramid scheme.
Sure you -- -- glad you're not gotten.
-- -- -- about -- it's not a parent but I'm sure it's a great we have good products it but -- great companies and isn't isn't there a lack of disclosure about real real sort of -- -- disclosure.
About how actually make money and that's what's leading and that and that this is why the SEC's looking at it.
By the way first of all that.
You know which just that is not that not correct okay I'm in relation to the S -- -- we should statement today take.
We have contacted the SEC so they they start looking at it if -- you called them.
Again I can simply repeat the words of the statement that we've issued which is that we.
-- and I'm not saying -- the SEC we content to regulators -- and beyond that I can't comment why are they looking at this.
There's no indication that they are looking at what recently said is that we contacted regulations.
And that's -- -- they generally don't look at stuff.
Unless -- -- -- they they look at disclosures stuff all the time that is a key issue are you assuring the investing public right here that you're disclosures.
Are you are comport with with appropriate law we absolutely believe that all -- disclosures are fully compliant.
Filter by section