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  "documentTitle": "Herbalife, Ltd. (HLF)",
  "authorId": "01_Pershing_Square",
  "authorName": "William Ackman",
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  "presentationDate": "2012-12-20 00:00:00",
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  "notes": "The slide uses legal citations to build a case against pyramid schemes by highlighting the materiality of profit potential claims.",
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      "text": "Under FTC Act § 5, representations of profit potential are clearly material to consumers",
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      "text": "F.T.C. v. Five Star Auto, 97 F. Supp. 2d at 529\nThe case law is clear that representations regarding the profit potential of a business opportunity are important to consumers, and therefore such are material misrepresentations in violation of Section 5. See FTC v. Minuteman, 53 F. Supp.2d at 258 (\"misrepresentations -- which tend to bear directly on the economic viability of the transaction under consideration -- are both likely to deceive and material.\") (citing FTC v. Security Rare Coin & Bullion Corp., 1989-2 Trade Cas. (CCH) ¶68,807 at 62,219 (D. Minn.)), aff'd, 931 F.2d 1312 (8th Cir. 1991); FTC v. Kitco of Nevada, Inc., 612 F. Supp. 1282, 1292 (D. Minn. 1985). See also FTC v. U.S. Oil and Gas Corp, 1987 U.S. Dist. LEXIS 16137 (S.D. Fl. 1987).",
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      "text": "“misrepresentations -- which tend to bear directly on the economic viability of the transaction under consideration -- are both likely to deceive and material.” — FTC v. Minuteman, 53 F. Supp.2d at 258",
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      "text": "Indicia of Pyramids: Exaggerated Earnings Claims",
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