The Federal Trade Commission has decided that Herbalife is not a pyramid scheme, according to Dow Jones.
Herbalife shares jumped by as much as 16% in premarket trading on Friday.
The FTC opened a probe into the company after hedge fund manager Bill Ackman alleged that it operated like a pyramid scheme. The company sells weight-management products through a network of independent distributors who earn sales commissions.
In July 2014, Ackman published a more than 200-page slide deck detailing why Herbalife was “the big lie.”
More to come …
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