Tag Archives: HLF

$HLF,Herbalife

Sovereign Bonds, Libyan Fund, HerbaLife Hire: Compliance

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The International Monetary Fund is proposing changes to international sovereign bond contracts to help avoid a repeat of the legal battle between Argentina and minority creditors that pushed the country into its second default in 13 years.

The Washington-based IMF recommended modifying a provision known as “pari passu,” a clause that led New York judges to rule that Argentina cannot make payment to holders of its restructured debt as long as it refuses to pay holders of defaulted debt from 2001 in full. The country went into default in July after settlement talks failed.

New terms backed by the IMF would clarify that a country doesn’t need to pay creditors on an equal basis, it said.

Argentina’s legal dispute stems from its record $95 billion default in 2001. While 92 percent of creditors accepted discounts of 70 percent in restructurings in 2005 and 2010, hedge funds sued for better terms, eventually winning a ruling to be paid in full.

The fund also said it will push for more stringent collective action clauses, a system designed to make a debt exchange accepted by a qualified majority of bond holders binding to all.

Courts

Goldman Sachs Relationship With Libyan Fund ‘Shocked’ Lawyer

A London lawyer who worked at the Libyan Investment Authority in 2008 was “shocked” by the fund’s inappropriate relationship with Goldman Sachs Group Inc. (GS), according to the fund’s court documents.

Catherine McDougall, then a lawyer at Allen & Overy LLP who was assigned to work at the fund, said in a witness statement cited at a London court hearing yesterday by a lawyer for LIA, that the line between friendship and arms-length commercial dealings “had clearly been blurred.”

LIA employees told her about a “lavish” trip to Morocco and that “there was heavy drinking and girls involved,” paid for by a Goldman Sachs banker on his company credit card, McDougall said in the witness statement.

Libya’s sovereign wealth fund sued Goldman Sachs for about $1 billion over money-losing investments made in 2008, saying the bank exploited the LIA’s inexperience to sell risky derivatives.

The LIA asked to schedule the lawsuit for a 30-day trial in January 2016.

Fiona Laffan, a spokeswoman for Goldman Sachs in London, didn’t immediately respond to an e-mail seeking comment on the hearing. Goldman said in its court documents that McDougall arrived at the LIA after the disputed trades had been agreed on.

The case is The Libyan Investment Authority v. Goldman Sachs International, case no. 14-310, High Court of Justice, Chancery Division.

Comings and Goings

Herbalife Names Compliance Head Amid Fight With Bill Ackman

Herbalife Ltd. (HLF), the nutrition company that’s being probed by the Federal Trade Commission over allegations it runs a pyramid scheme, appointed a former official from the agency to the new role of head of compliance.

Pamela Jones Harbour, who served as an FTC commissioner from 2003 to 2010, will lead a global compliance team covering 91 markets, Herbalife said in a statement yesterday. Most recently she was a partner helping head the privacy and data-protection team at law firm BakerHostetler and also was a prosecutor in the New York State attorney general’s office for 12 years.

Herbalife Chief Executive Officer Michael Johnson has made multiple changes in response to a two-year assault by billionaire hedge-fund manager Bill Ackman, who has waged a battle to shut down Herbalife since December 2012, saying it misleads distributors, misrepresents sales figures and sells a commodity product at inflated prices.

U.S. regulators and law enforcement also are investigating the allegations.

To contact the reporter on this story: Carla Main in New Jersey at cmain2@bloomberg.net

To contact the editors responsible for this story: Michael Hytha at mhytha@bloomberg.net David Glovin, Andrew Dunn


Wachtell’s Busy Lawyers Help HP Split: Business of Law

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It’s been a busy stretch for lawyers at Wachtell, Lipton, Rosen & Katz. While one team worked on the breakup of Hewlett-Packard Co. (HPQ) into two separate companies, a second team represented CareFusion Corp. (CFN), a provider of infusion pumps and drug dispensing systems, which is being acquired by Becton, Dickinson & Co. for $12.2 billion.

Becton Dickinson sells laboratory equipment, diagnostic tests and a range of drug delivery systems.

The teams comprised different lawyers, although antitrust partner Nelson Fitts and tax partner T. Eiko Stange worked on both deals.

The Hewlett-Packard team was led by corporate partners Andrew Brownstein and Benjamin Roth and included partners Adam Shapiro, executive compensation and benefits; and Eric Rosof, finance.

The CareFusion team was led by corporate partners David Katz and David Lam and included partners Jeannemarie O’Brien, executive compensation and benefits; and Gregory Pessin, finance.

Skadden, Arps, Slate, Meagher & Flom LLP represented Becton Dickinson. From Skadden were partners Paul Schnell, C. Michael Chitwood and Thomas Greenberg, all mergers and acquisitions; Erica Schohn, executive compensation and benefits; Bruce Goldner, intellectual property and technology; John Bentivoglio, health-care enforcement and regulation; Steven Messina, banking; Laura Kaufmann Belkhayat, corporate finance; Clifford Aronson, antitrust; and Eric Sensenbrenner, tax.

In addition, Paul M. Hamburger, co-chair of the employee benefits, executive compensation and ERISA litigation practice center of Proskauer Rose LLP, led a team that advised Becton Dickinson on employee benefit matters.

For more on the Hewlett-Packard deal, click here. For more on the Becton Dickinson-CareFusion deal, click here.

Firm News

Herbalife Names Compliance Head Amid Fight With Bill Ackman

Pamela Jones Harbour, a Baker & Hostetler LLP partner, will head compliance for Herbalife Ltd. (HLF), the nutrition company under investigation by the Federal Trade Commission over allegations it runs a pyramid scheme.

Harbour, who served as an FTC commissioner from 2003 to 2010, will lead a global compliance team covering 91 markets, Herbalife said in a statement yesterday.

Herbalife Chief Executive Officer Michael Johnson has made multiple changes in response to a two-year assault by billionaire hedge-fund manager Bill Ackman, who’s accused the company of cheating its independent distributors. The company’s product-return policy was strengthened, outside sales leads were banned, training was added and new distributors now must acknowledge protections in writing. Harbour’s appointment may mean that stricter policing of distributors is coming.

“I know first-hand how great the products are because I’ve been a customer for 10 years,” Harbour said in the statement. “My understanding of the industry and familiarity with the products have given me great insight into what a beneficial company Herbalife is.”

Harbour’s full title will be senior vice president, global member compliance and privacy. The position entails developing education and training policies for Herbalife’s almost 4 million independent members worldwide and coordinating the company’s global privacy and cybersecurity efforts.

Harbour, who worked on the privacy and data-protection team at BakerHostetler, also served as a prosecutor in the New York state attorney general’s office for 12 years.

At Herbalife, she will report to Mark Friedman, the company’s general counsel.

Orrick Adds One Partner in San Francisco and One in London

Randy Luskey, a former assistant U.S. attorney in the criminal division for the Northern District of California, will rejoin the San Francisco office of Orrick, Herrington & Sutcliffe LLP as a partner in the firm’s white-collar defense and corporate investigations group.

Luskey began his career at Orrick as a summer associate in 2003 and joined the U.S. Attorney’s office in 2011. There, he worked on a health-care fraud jury trial against the owners of two medical device companies as well as the prosecution of Ross Ulbricht, who is accused of being the architect of Silk Road, a drug-trafficking website, the firm said in a statement.

Orrick has also added tax partner Ed Denny from Norton Rose Fulbright to its London office. Denny recently advised on tax issues in connection with HSBC Holdings Plc’s underwritten rights issue, Iberia’s merger with British Airways and Delta Air Lines Inc.’s acquisition of a stake in Virgin Atlantic.

To contact the reporter on this story: Ellen Rosen in New York at erosen14@bloomberg.net

To contact the editors responsible for this story: Michael Hytha at mhytha@bloomberg.net David Glovin, Andrew Dunn


Herbalife hires ex-commissioner at FTC to oversee sales team’s conduct

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Herbalife Ltd., the nutrition company that is under investigation by the Federal Trade Commission, has hired a former FTC commissioner to oversee the conduct of its independent sales team.

Pamela Jones Harbour will monitor training and mentoring programs for Herbalife’s nearly 4 million distributors and employ “robust and consistent monitoring and enforcement procedures,” the company said in a news release.

Investors seemed to like the news, which the Los Angeles company released early Monday. Herbalife shares rose 6%, or $2.69, to $47.30.

The 34-year-old company has been one of the hottest topics — and most volatile stocks — on Wall Street for nearly two years.

In December 2012, hedge fund manager Bill Ackman accused Herbalife of operating a complex pyramid scheme that victimizes a network of predominantly minority distributors who are attracted by promises of wealth, but end up making little or no money selling its products. At the time, he said he had shorted the company’s stock by more than $1 billion, a move that would enable him to profit if its stock price fell.

In an interview Monday, Ackman said he remains convinced that Herbalife’s business model is illegal. He declined to comment on Harbour’s hiring.

“The problem with Herbalife is if it requires its distributors to comply with the law, its sales will collapse,” Ackman said. “You cannot sell billions of dollars of overpriced nutrition powder unless you defraud people into believing there’s a business opportunity.”

Herbalife has repeatedly denied Ackman’s allegations, saying many of its distributors join the company to receive discounts on products they personally consume, not as their only source of income.

The FTC announced earlier this year that it had opened an investigation of Herbalife. The hiring of Harbour quickly became a topic of debate on financial websites: Supporters of the company said it’s evidence that the FTC is not likely to hammer the company; critics said it was a sign of Herbalife’s desperation.

Harbour was nominated by President George W. Bush in 2003 and confirmed by the Senate. She served as an FTC commissioner from 2003 to 2010 and most recently worked as an attorney for a Washington law firm.

As a Herbalife senior vice president in charge of global member compliance and privacy, Harbour said she has personally consumed Herbalife’s nutrition products for 10 years and is impressed with the company.

“My understanding of the industry and familiarity with the products have given me great insight into what a beneficial company Herbalife is, and I am delighted to join such a talented team,” Harbour said in a statement.

Herbalife’s weight-loss shake mix, vitamins and protein bars are not available in retail stores. They can be purchased only from its distributors, who profit from sales they make and from sales made by others they recruit into the business.

stuart.pfeifer@latimes.com

Twitter: @spfeifer22

Copyright © 2014, Los Angeles Times


Herbalife shares jump after company hires former FTC commissioner

This post was originally published on this site

Herbalife Ltd., the nutrition company that is under investigation by the Federal Trade Commission, has hired a former FTC commissioner to oversee the conduct of its independent sales team.

Pamela Jones Harbour will monitor training and mentoring programs for Herbalife’s nearly 4 million distributors and employ “robust and consistent monitoring and enforcement procedures,” the company said in a news release.

Investors seemed to like the news, which the company released early Monday. Herbalife shares gained 6% to close at $47.30 in Monday trading.

Harbour served as an FTC commissioner from 2003 to 2010 before entering private legal practice. She was appointed to the commission by President George W. Bush.

Her hiring comes as the FTC investigates allegations that Herbalife operates an illegal pyramid scheme that rewards distributors more for recruiting than it does for product sales.

Harbour, who will be a senior vice president in charge of global member compliance and privacy, said she has personally consumed Herbalife’s nutrition products for 10 years.

“My understanding of the industry and familiarity with the products have given me great insight into what a beneficial company Herbalife is, and I am delighted to join such a talented team,” Harbour said in a statement.

Herbalife’s weight-loss shake mix, vitamins and protein bars are not available in retail stores. They can be purchased only from its distributors, who profit from sales they make and from sales made by others they recruit into the business.

The 34-year-old company has been one of the hottest topics — and most volatile stocks — on Wall Street for nearly two years. 

In December 2012, hedge fund manager Bill Ackman accused Herbalife of operating a complex pyramid scheme that victimizes a network of predominantly minority distributors who are attracted by promises of wealth, but end up making little or no money selling its products. At the time, he said he had shorted the company’s stock by more than $1 billion, a move that would allow him to profit if its stock price fell.

Ackman, who continues to short the company, has predicted that regulators will shut the company down, driving its stock price to zero.

Herbalife denied the allegations, saying many of its distributors join the company to receive discounts on products they intend to personally consume, not as their only source of income. It’s a business model employed for decades by many other multilevel marketing companies, Herbalife said.

Copyright © 2014, Los Angeles Times


U.S. equities opened the session stronger

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…continuing its gains from Friday after better jobs data helped confirm a stronger economy, but failed to hold. Stocks didn’t end so badly, kinda flattish on the day, but off their best levels, while bonds were stronger.

No major data in the U.S. today (Germany weak data…again), with a fairly weak calendar overall for the week. Metals & mining shares active, as well as biotech (downside), commodities bounce on softer dollar. Volumes were light, though emerging markets were active on Brazil election news, while U.S. Ebola scare news remains in the spotlight (oil/gold end higher) – Tech and Small Caps underperformed.

HammerstoneReport Closing Recap -10/6/14


Herbalife Ltd. Announces Third Quarter 2014 Earnings Release Date and Investor Call

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LOS ANGELES–(BUSINESS WIRE)–

Global nutrition company, Herbalife Ltd. (HLF), will release its third quarter 2014 financial results after the close of trading on the NYSE on Monday, November 3, 2014. The following day, Tuesday, November 4, 2014 at 8 a.m. PST (11 a.m. EST), Herbalife’s senior management team will host an investor conference call to discuss its recent financial results and provide an update on current business trends.

The dial-in number for this conference call for domestic callers is 877-317-1296 and 706-634-5671 for international callers (conference ID 7788487).

Live audio of the conference call will be simultaneously webcast in the investor relations section of the company’s website at http://ir.herbalife.com.

An audio replay will be available following the completion of the conference call in MP3 format or by dialing 855-859-2056 for domestic callers or 404-537-3406 for international callers (conference ID 7788487). The webcast of the teleconference will be archived and available on Herbalife’s website.

About Herbalife Ltd.

Herbalife Ltd. (HLF) is a global nutrition company that sells weight-management, nutrition and personal care products intended to support a healthy lifestyle. Herbalife products are sold in more than 90 countries to and through a network of independent distributors. The company supports the Herbalife Family Foundation and its Casa Herbalife program to help bring good nutrition to children. Herbalife’s website contains a significant amount of financial and other information about the company at http://ir.Herbalife.com. The company encourages investors to visit its website from time to time, as information is updated and new information is posted.

    Contact:
    Herbalife Ltd.
    Media Contact:
    Julian Cacchioli, 213-745-0517
    VP, Worldwide Corporate Comms.
    or
    Investor Contact:
    Amy Greene, 213-745-0504
    SVP, Investor, Corporate and Government Relations


    Rite Aid Gains Momentum as September Comps Rise 5.1%

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    Shares of drugstore chain retailer, Rite Aid Corporation (RAD) has gained approximately 4.6% since the company reported robust sales results for the month of September on Oct 2, wherein its comparable-store sales (comps) for the four weeks ended Sep 27, 2014 rose 5.1%. The improvement reflected an increase in front-end and pharmacy comps as well as higher prescription count at comparable stores.

    Pharmacy comps for September were up 6.3%, which included a negative impact of nearly 225 basis points from generic drug introduction. Front-end comps improved 2.3%, while prescription count at comparable stores rose 4.4%.

    Rite Aid’s total drugstore sales for the month stood at $2.022 billion, up 4.5% from the year-ago figure of $1.935 billion. Prescription sales constituted 69.5% of total drugstore sales, while third-party prescription sales accounted for 97.6% of pharmacy sales.

    Further, the nation’s third-largest drugstore chain in terms of store count, following Walgreen Co. (WAG) and CVS Health Corp. (CVS), reported a 3.8% rise in comps for 30 weeks period ended on Sep 27.

    Total drugstore sales for the 30 weeks period improved 3.3% to $14.924 billion against $14.449 billion in the year-ago comparable period. Prescription sales constituted 68.7% of total drugstore sales. Third-party prescription sales accounted for 97.5% of pharmacy sales.

    Comparing the September sales metrics with August, we noticed that the company has witnessed a remarkable improvement in every area. In August, Rite Aid had reported a 3.9% rise in total comps, which comprised of 1.1% and 5.2% increases at front-end and pharmacy comps, respectively. Prescription counts at comparable stores were 3.7% higher from the previous-year period.

    Further, Rite Aid which competes with Herbalife Ltd. (HLF) has recently posted splendid results for second-quarter fiscal 2015, wherein its top and bottom lines both came ahead of the Zacks Consensus Estimate and mark a significant year-over-year improvement.

    However, we are disappointed by the company’s downbeat fiscal 2015 guidance. The company revealed that the profitability from the new generics has not met its expectations and anticipates falling profitability from generics to weigh on its pharmacy margins in the remaining period of the fiscal year. Therefore, Rite Aid trimmed its sales, adjusted EBITDA, net income and earnings per share forecasts for fiscal 2015.

    Currently, Rite Aid carries a Zacks Rank #3 (Hold).

    Read the Full Research Report on RAD
    Read the Full Research Report on CVS
    Read the Full Research Report on WAG
    Read the Full Research Report on HLF

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    [$$] Herbalife Hires Former FTC Commissioner

    This post was originally published on this site


    Herbalife Ltd.



    HLF +6.03%



    Herbalife Ltd.


    U.S.: NYSE


    $47.30


    +2.69
    +6.03%



    Oct. 6, 2014 4:01 pm


    Volume (Delayed 15m)
    :
    3.55M



    AFTER HOURS



    $47.27


    -0.03
    -0.07%


    Oct. 6, 2014 4:25 pm


    Volume (Delayed 15m)
    :
    92,929




    P/E Ratio
    9.90

    Market Cap
    $4.09 Billion


    Dividend Yield
    2.54%

    Rev. per Employee
    $721,610








    10/06/14 Herbalife Hires Former FTC Com…
    09/30/14 Two Charged With Insider Tradi…
    09/23/14 Morning MoneyBeat: Bond Bubble…
    More quote details and news »

    has hired a former U.S. regulator to lead its compliance team, after the Federal Trade Commission opened an investigation into the embattled nutritional-supplement company in March.

    Pamela Jones Harbour

    —who worked as an FTC commissioner from 2003 to 2010 and as a prosecutor for the New York State Attorney General’s office for 12 years—has been appointed senior vice president of global member compliance and privacy. She will lead a compliance team across 91 markets in the newly created role, Herbalife said Monday.

    Ms. Harbour’s appointment comes as activist investors continue to face off over the company.

    Herbalife, which sells weight-loss shakes and fitness supplements, has been pummeled by hedge fund manager

    William Ackman

    since December 2012, when he spent more than three hours in a Manhattan auditorium laying out his case for why he thinks the direct marketer is a pyramid scheme whose salespeople rely more on signing up new recruits than selling product. Mr. Ackman has repeatedly called for an FTC investigation into the company, and his firm, Pershing Square Capital Management, has bet about $1 billion that the company’s shares will fall.

    The company has repeatedly defended its operations and has won the support of a number of Mr. Ackman’s hedge fund rivals, including

    Carl Icahn,

    who have bet the company’s stock would rise.

    Shares of Herbalife are down more than 43% this year through Friday’s close.

    In March, Herbalife said it received a so-called civil investigative demand from the FTC. The FTC has the authority to bring civil cases against companies engaged in unfair or deceptive trade practices. It can ask a court to halt an alleged pyramid scheme, order consumer refunds, and force a company to forfeit ill-gotten profits.

    In addition to compliance, Ms. Harbour will oversee privacy and cybersecurity for Herbalife. In a company statement, Ms. Harbour said she has been a Herbalife customer for a decade.

    Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com


    Herbalife Names Compliance Head Amid Fight With Ackman

    This post was originally published on this site

    Herbalife Ltd. (HLF), the nutrition company that’s being probed by the Federal Trade Commission over allegations it runs a pyramid scheme, appointed a former official from the agency to the new role of head of compliance.

    Pamela Jones Harbour, who served as an FTC commissioner from 2003 to 2010, will lead a global compliance team covering 91 markets, Herbalife said in a statement today. Most recently she was a partner helping head the privacy and data-protection team at law firm BakerHostetler and also was a prosecutor in the New York State attorney general’s office for 12 years.

    Herbalife Chief Executive Officer Michael Johnson has made multiple changes in response to a two-year assault by billionaire hedge-fund manager Bill Ackman, who’s accused the company of cheating its independent distributors. The company’s product-return policy was strengthened, outside sales leads were banned, training was added and new distributors now must acknowledge protections in writing. Harbour’s appointment may mean stricter policing of distributors are coming.

    “I know first-hand how great the products are because I’ve been a customer for 10 years,” Harbour said in the statement. “My understanding of the industry and familiarity with the products have given me great insight into what a beneficial company Herbalife is.”

    Herbalife, which is based in Los Angeles, rose 2.5 percent to $45.71 at at 9:56 a.m. in New York. The shares declined 43 percent this year before today after more than doubling last year.

    Ackman’s Fight

    Ackman has waged a battle to shut down Herbalife since December 2012, saying it misleads distributors, misrepresents sales figures and sells a commodity product at inflated prices. U.S. regulators and law enforcement also are investigating the allegations.

    At least 16 Latinos have filed consumer complaints with the Illinois attorney general, saying Herbalife duped them into buying tens of thousands of dollars worth of products they couldn’t sell. The state is investigating. Herbalife relies on independent contractors to distribute its wares and says it enforces rules governing distributors.

    Nutrition clubs, a key part of Herbalife’s direct-sales approach, lose $12,000 on average and swindle low-income consumers, Ackman said in a July presentation. Some club programs create a kind of “conscripted consumption” of its meal-replacement shakes, teas and aloe drinks, generating artificial demand, Ackman and his team have alleged.

    Herbalife has denied the allegations, saying Ackman’s claims are “completely false and fabricated.”

    Harbour’s full title will be senior vice president, global member compliance and privacy. The position entails developing education and training policies for Herbalife’s almost 4 million independent members worldwide and coordinating the company’s global privacy and cyber-security efforts.

    She’ll report to Mark Friedman, Herbalife’s general counsel.

    To contact the reporter on this story: Duane D. Stanford in Atlanta at dstanford2@bloomberg.net

    To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net Kevin Orland, Bruce Rule