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  "documentTitle": "Herbalife, Ltd. (HLF)",
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  "authorName": "Pershing Square Capital Management",
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  "presentationDate": "2013-04-09 00:00:00",
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      "text": "Herbalife's entire business model appears to incentivize primarily the payment of compensation that is ‘facially unrelated to the sale of the product to the ultimate users because it is paid based on the suggested retail price of the amount ordered from [HLF], rather than based on actual sales to consumers.’",
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      "text": "Pyramid Schemes are Illegal. 'Pyramid schemes are said to be inherently fraudulent because they must eventually collapse.' (see Webster v. Omnitrition, 79 F.3d 776, 782 (9th Cir. 1996), quoting Koscot).",
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      "text": "Herbalife has already been Found to be a Pyramid. In 2011, following seven years of proceedings examining Herbalife's marketing plan, a Belgian court found that Herbalife is a pyramid scheme.",
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      "kind": "paragraph",
      "text": "Recruiting Rewards v. Retail Profits. To apply that standard, one examines the monetary rewards received by distributors. When a distributor gets paid for recruiting a new distributor, that is a recruiting reward.",
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      "kind": "quote",
      "text": "“Pyramid schemes are said to be inherently fraudulent because they must eventually collapse. Like chain letters, pyramid schemes may make money for those at the top of the chain or pyramid, but ‘must end up disappointing those at the bottom who can find no recruits.’” — Webster v. Omnitrition, 79 F.3d 776, 782 (9th Cir. 1996), quoting Koscot.",
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      "text": "5 Herbalife v. Ford, Memorandum & Order Regarding Cross-Motions for Summary Judgment, No. CV 07-02529, slip op. at 16 (C.D. Cal. Aug. 25, 2009).",
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      "kind": "title",
      "text": "Why We Believe Herbalife Meets the Legal Definition of a Pyramid",
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