Controversial Nutritional Supplement Herbalife Raises Profit Forecast

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

Herbalife on the Up and Up, Much to the Chagrin of Hedge Fund Manager

(Patrick T. Fallon/Bloomberg via Getty Images)

By Will Levith

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.

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