NEW YORK, Feb. 7, 2019 /CNW/ -- Pomerantz LLP is investigating claims on behalf of investors of Herbalife Nutrition Ltd. ("Herbalife" or the "Company") (NYSE: HLF). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether Herbalife and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On January 8, 2019, Herbalife announced the resignation, effective immediately, of Chief Executive Officer ("CEO") Richard Goudis. Herbalife merely stated that "Mr. Goudis' departure . . . pertains to comments which recently came to light made by Mr. Goudis prior to his role as CEO, that are contrary to the Company's expense-related policies and business practices."
Then, on February 7, 2019, The Wall Street Journal reported that Goudis' resignation was prompted "after a recording of comments he made years ago about bypassing internal accounting policies recently ended up in the hands of federal investigators." Citing "people familiar with the matter," The Wall Street Journal reported that "[w]hen Mr. Goudis was Herbalife's chief financial officer about a decade ago, he told a colleague working in Hong Kong or mainland China to ignore the company's expense-account limit on entertainment spending" and that a recording of the conversation had "reached the Justice Department, which has been investigating whether [Herbalife] violated foreign bribery laws in its business dealings in China." Following this news, Herbalife's stock price fell sharply during intraday trading on February 7, 2019.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP