WASHINGTON (AP) — Dietary supplements company Herbalife says it will clarify how it reports key elements of its business practices, which have been at the center of debate between sparring hedge fund managers.
Herbalife, which uses a network of distributors to sell its nutrition and weight loss products, has been fighting off claims that its business amounts to a pyramid scheme. Hedge fund manager Bill Ackman argues that the company makes most of its money by recruiting new salespeople, rather than on the products they sell. Herbalife disputes Ackman's statements and says he's just trying to force the stock down for his own financial gain.
Herbalife said Wednesday it will begin breaking out which of its 3.2 million distributors are also major customers.