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  "documentTitle": "Herbalife, Ltd. (HLF)",
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  "authorName": "William Ackman",
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  "presentationDate": "2012-12-20 00:00:00",
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  "notes": "The slide uses a direct quote from a legal declaration to frame the business model as a pyramid scheme.",
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      "text": "In 2009, Bruce Roth (former President’s Team member) provided the following declaration as part of a legal dispute against Herbalife that alleged that Herbalife was illegally perpetuating a pyramid scheme",
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      "text": "Distributors have to purchase product from Herbalife each month in order to obtain their paychecks.",
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      "text": "6. By 2007, operating an Herbalife independent distributorship business had become unsustainable. Herbalife’s entire program is based on purchases made from Herbalife. Distributors have to purchase product from Herbalife each month in order to obtain their paychecks. Under this system, we would not be paid any money or commissions from the sales by people in our business organization in a given month unless we purchased products from Herbalife during that month. Herbalife products became almost impossible to retail because the “pay-for-your-paycheck” Herbalife product was being dumped by distributors on eBay for much less than we could sell it. Moreover, this product could not be returned to Herbalife or the distributor lost his or her paycheck and had to permanently resign from Herbalife. In addition, Herbalife’s product line is very limited and consists primarily of weight loss and nutritional products. This also makes it very difficult to retail because customers do not continue to buy the product or the customers find it cheaper to buy from eBay.",
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      "text": "“By 2007, operating an Herbalife independent distributorship business had become unsustainable. Herbalife’s entire program is based on purchases made from Herbalife. Distributors have to purchase product from Herbalife each month in order to obtain their paychecks.” — Bruce Roth, Declaration in Herbalife Int'l of America, Inc. v. Ford et al.",
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      "text": "Source: Declaration of Bruce H. Roth, sworn 5-18-09, in Herbalife Int'l of America, Inc. v. Ford et al., Case No. CV 07-2529 (U.S.D.C., C.D. Cal.).",
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      "text": "Why Do Senior Distributors Buy Product? To “Pay-for-your-Paycheck”",
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