Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Herbalife Execs Jump to Defense of Company

Details

  • Description

    Dow Jones Newswires Columnist Al Lewis discusses whether the company is a pyramid scheme.

  • Duration 4:32
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

-- is Herbalife the multi billion dollar company that sells nutrition and weight loss products by word of mouth.

Preying upon -- very people it purports to help.

The company's CEO Michael Johnson out swinging today after a hedge fund manager recently claimed that company was the best managed pyramid scheme in the history of the world.

Joining me now Al Lewis columnist for Dow Jones Newswires.

-- -- -- -- -- -- -- -- Is this company -- and -- I'm very good at is this company on the verge of collapse.

Not is absolutely not on the verge of collapse -- -- the company's.

Been doing quite well I think when bill -- closet eight pyramid scheme what are you saying is that this company -- -- Most of its revenues from recruiting people people recruiting people.

Rather than selling product the company has denied this.

But -- Norma -- Jerry I haven't seen any solid numbers that that show us exactly how this company gets its revenues and I think that -- still up in the.

After today.

Well you know this is an issue that's been talked about for years with this company I think the FTC's taken a look at it.

A lot of people of talked about it even the SEC the company itself.

Says -- only nine point 85% distributors make more than 7300 bucks an annual gross compensation so.

The numbers are not that big for individuals but you have your own personal story about this your mom and dad actually sold herbal -- products that want to point right.

Now decided not sell at one time -- adult -- entice flat company called holiday magic.

Which did turn out to fit the definition of the FDC's.

You know pyramid scheme and the FTC shut it down.

What I was trying to say is that these things have been a -- for a long time Jerry.

Some Obama are sustainable like Tupperware and -- -- others -- you know flash in the night but.

I mean come mind what they still think get CEO and they tell you that you're gonna -- stuffed all your friends NN you're gonna record all your friends and their friends -- -- get -- Paid for recruiting your friends that's the key.

This is no small company it's very very big they have a lot of success and what they -- -- weight loss supplements vitamins wrinkle creams.

-- in 84 countries so they're virtually all over the planet.

You know who I'm wondering is the bad guy in all of this -- -- short sellers do not have a good reputation.

And William Ackerman is out there.

Saying this company is going now I mean he's making that -- -- his interest seeing that he's bad mouth -- this company.

Say it's doing in Iraq saying when I think a lot of people out there including the people -- Herbalife.

-- -- Hey -- you know this is this is this isn't fair and it's not true what do you make of that.

-- -- people that you mention that are selling these products are selling things at the -- Wal-Mart trip costs go for anything house okay it's not the -- like brand but come on.

Diet six how many claims are made about diet shakes and vitamins -- turn out to be you know somewhat shaky when you really analyze it.

It is true that this guy is a sort seller and he wants to make money off of but he says the -- personally anime he's gonna donate to charity.

And that he's just out to expose this company we can take that for what it's worth.

But you know in some way short sellers are God's little messengers that all is not right within what -- -- what the world I mean.

Nobody likes a spoil our and they -- -- and they spoil things I don't know if this company is going to be deemed.

-- chairman scheme by the FDC that's what he's betting on and that's a pretty -- that.

I mean it's one thing to say yeah this is this -- company based on aggressive sales and I think it's a pyramid scheme.

But he's saying the stocks going to zero because I'm gonna make sure the FDC shuts it well Michael job data that is that is what it is clinical.

-- read a comment from that Herbalife CEO we are confident the you'll see a legitimate company with legitimate customers there's what they're out swinging.

And you did see just a second ago we were showing the chart -- that stock it's gone down today.

Sitting on my -- is a multi level marketing company right.

And it's -- know what he's complaining about it -- today.

Or Tupperware.

I -- our our -- And you know what in his company's you can find people who do really well you can find other people who paid a lot of money for a lot of inventory and couldn't sell -- So you know what not -- a salesman Jerry and that's really when it comes down to.

Are -- out thanks for coming on tonight appreciate your time thank you good thank you.

Nice to see -- -- is still ahead.

Load More