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Controversial Nutritional Supplement Herbalife Raises Profit Forecast

Was accused of being pyramid scheme by billionaire hedge fund manager.

Finance By

It appears that Herbalife’s profit just got a boost from its own nutritional supplements.

According to Reuters, the Los Angeles–based company raised its quarterly profit forecast $0.07, and in May, documented 90 percent of its sales as U.S.-based, which exceeds a threshold set by the FTC in an agreement it made with the commission.

Herbalife had recently paid $200 million and agreed to change its business practices based on an accusation by hedge fund manager William Ackman that it running a pyramid scheme.

As Reuters notes, in 2012, Ackman “unveiled a $1 billion short position against Herbalife in a withering, hours-long presentation.” He’s even gone as far to star in a documentary, Betting on Zero, about how he believes the company is a losing proposition.

But the recent evaluation, at least, has a healthier glow.

Watch the trailer for Betting on Zero below.

Read full story at Reuters