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  "documentTitle": "Herbalife, Ltd. (HLF)",
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  "authorName": "William Ackman",
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      "text": "In 2009, the California federal court stated that Herbalife appears to pay compensation facially unrelated to sale of products to ultimate users – an essential element of finding of an MLM to be a pyramid.",
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      "text": "In Herbalife v. Ford, a group of senior Herbalife distributors, including a former President's Team member (top 0.1%) – network insiders who knew how the system works – accused HLF of operating an illegal pyramid scheme. In 2009, after extensive factual discovery, the Federal Court in California, Herbalife's headquarters, applied the Ninth Circuit's Omnitrition decision to Herbalife and stated:",
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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.’” - District Judge Gary A. Feess",
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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.’” — District Judge Gary A. Feess",
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      "text": "Memorandum & Order Regarding Cross-Motions for Summary Judgment, No. CV 07-02529, slip op. at 16 (C.D. Cal. Aug. 25, 2009) (quoting Webster v. Omnitrition, 79 F.3d 776, 782 (9th Cir. 1996)). The Ninth Circuit in Omnitrition said that compensation unrelated to ultimate-user sales is the “sine qua non” of a pyramid scheme. 79 F.3d at 781 (emphasis added). The marketing system in Omnitrition (found prima facie to be a pyramid) is nearly identical to Herbalife's plan. While the Ford case was disposed of on other grounds – namely, the parties challenging Herbalife as a pyramid failed to show that they were victims of the scheme, as opposed to participants who profited from it – the Court's finding was not disturbed or changed.",
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      "text": "A History of Lawsuits: the Ford case",
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