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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 has no Genuine Data Demonstrating Retail Sales.",
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      "text": "Herbalife's Major Push is for New Recruits to Seek ‘Lifestyle Money’ from Recruiting. Senior Herbalife distributors encourage new recruits to recruit others (as opposed to focusing on retail sales) if they want to make ‘Lifestyle Money.’",
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      "text": "Yet, astonishingly, despite the ability to do so, Herbalife says: “We don't track this number [of sales outside the distributor network] and do not believe it is relevant to the business or investors.” (See 8-K, dated May 1, 2012).",
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      "text": "Section 17 Customer Retail Receipts and the Customer Refund Policy. Rule 17-A Providing Retail Receipts to Customer. A Distributor must provide an official completed Herbalife Retail Order Form to all retail customers when the sale is completed.",
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      "text": "Herbalife has no Genuine Data Demonstrating Retail Sales. Herbalife's 10-K acknowledges among its risk factors that it must comply with consumer-protection and pyramid regulations.",
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      "text": "Recruiting Rewards Far Outweigh Any Retail Profit. Herbalife distributors “obtain their monetary benefits primarily from recruitment rather than the sale of goods and services to consumers,” meeting the definition of a pyramid scheme, quoted above.",
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      "kind": "paragraph",
      "text": "We believe that while the vast majority of distributors earn little to no income, those who do are rewarded primarily for recruiting new distributors. Based on public data and the assumptions detailed in our presentation, we believe that recruiting-related rewards constitute over 90% of the earnings of Herbalife distributors.",
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      "text": "We don’t track this number [of sales outside the distributor network] and do not believe it is relevant to the business or investors. — Herbalife (8-K, dated May 1, 2012)",
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