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The inquiries are focused on the activities of
about 10 top Herbalife members, CNBC said, citing sources. The
company is offering members assistance in obtaining legal
counsel, though it is unclear how many have taken
representation, CNBC said.
The identities of the members and what law enforcement asked
them is unclear, CNBC said.
In an emailed statement, Herbalife said it is cooperating with
authorities on requests for information relating to trading of
its shares and to its business practices. It did not comment on
CNBC's report about the agencies contacting its top members but
said it remained confident in the integrity of its business
practices.
Hedge fund mogul William Ackman and his Pershing Square Capital
Management LP have campaigned against Herbalife since December
2012, when they revealed a $1 billion short bet against the Los
Angeles-based company. Herbalife has long denied it is a pyramid
scheme.
Federal and state regulators, including the Securities and
Exchange Commission and the Federal Trade Commission, are
investigating the company.
"(We) are hopeful Ackman's long-term campaign of distortion will
be found to be illegal," Herbalife spokesman Alan Hoffman said
in the statement.
Last month, Herbalife won the dismissal of a lawsuit that
claimed the maker of weight-loss and nutritional products
fraudulently portrayed itself as a legitimate company, and that
shareholders lost money because it was actually an illegal
pyramid scheme.
(Reporting by Rama Venkat Raman in Bengaluru; Editing by
Muralikumar Anantharaman)
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