Business

Herbalife takes on activist Ackman, says is legitimate company

At a meeting with investors in New York, officials of the nutritional supplement company described Herbalife as retail-oriented. Ackman has called the company an unsustainable "pyramid scheme" because distributors earn more than 10 times as much from recruitment as they do by selling company products.

But Herbalife executives said 31 per cent of its US orders in 2012 were shipped to customers who were not Herbalife distributors, and an outside researcher hired by the company said 92 per cent of Herbalife's customer base was not part of the company's distributor base. — Reuters

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