Herbalife to Address Accusations
Amid recent accusations from the investor community that its business model constitutes a pyramid scheme, Herbalife (NYS: HLF) announced in a press release that it will hold an analyst and investor meeting in mid-January.
The terse document stated that the firm's senior management would "discuss the company's business in detail." This includes "comprehensive response to investor questions on its business model."
Last week, activist hedge fund CEO Bill Ackman levied the "pyramid scheme" accusations against the firm. This engendered a strongly worded denial from Herbalife CEO Michael Johnson.
The January event will also address more typical investor concerns, with an update on the company's operations and its potential for growth.
In the press release, Herbalife also said that it expects to spend more than the previously announced $50 million in quarterly share repurchases. It has authorized $1 billion for the purpose and still has $950 million of that amount remaining.
The article Herbalife to Address Accusations originally appeared on Fool.com.Eric Volkman has no positions in Herbalife, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.