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  "documentTitle": "Herbalife, Ltd. (HLF)",
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  "authorName": "David Klafter",
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  "presentationDate": "2014-11-06 00:00:00",
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  "notes": "This is a page from a Pershing Square shareholder letter/report criticizing Herbalife's business practices.",
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      "text": "Pershing Square believes, based on our investigation, that in the past Herbalife's compliance department made essentially no effort to enforce or audit compliance with the 70% Rule or the Ten Customer Rule and has taken steps to make Herbalife's return policy unattractive to distributors.",
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      "text": "In response to accusations that the Company is a pyramid scheme, Herbalife often points to three rules purportedly designed to ensure retail sales and discourage inventory-loading: (i) the 70% Rule, (ii) the Ten Customer Rule; and (iii) Herbalife’s return policy. Pershing Square believes, based on our investigation, that in the past Herbalife’s compliance department made essentially no effort to enforce or audit compliance with the 70% Rule or the Ten Customer Rule and has taken steps to make Herbalife’s return policy unattractive to distributors.",
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      "text": "The Internet is teeming with examples of outrageous claims about Herbalife products, including that Herbalife products can cure diabetes, arthritis, cysts, fibroids, ulcers, gout, seasonal and food allergies, hay fever, chronic sinusitis, sleep apnea, insomnia, ulcerative colitis, migraines, chronic fatigue syndrome, PMS, menopause, osteoporosis, back pain, joint pain, hemorrhoids, constipation, irritable bowel syndrome, depression, anxiety disorders, attention deficit disorder, obsessive compulsive disorder, heart palpitations, heart disease, anemia, Crohn’s disease, Parkinson’s disease, hepatitis, lupus, multiple sclerosis, hypoglycemia, pancreatitis, fibromyalgia, and the common cold. It is quite a list.",
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      "text": "For example, a deposition taken in 2009 of Jacqueline Miller, an Herbalife employee responsible for enforcing the 70% Rule, established that, between 2006 and 2009, Herbalife had disciplined approximately 10, but certainly fewer than 25, distributors for violating the 70% Rule. This amounts to approximately 1 out of every 100,000 Herbalife distributors.",
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      "text": "In September 2010 my father was diagnosed with terminal cancer and given a short time to live. I started him on the products and within 3 days he was out of bed and able to walk around the yard. He is still with me today. — Anonymous website testimonial",
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      "text": "20 See Herbalife v. Ford, No. 2:07-cv-2529-GAF-FMO (C.D. Cal.), Dkt. #143-2 (\"Miller Dep.\"), at 21\n21 Miller Dep. at 91-92.",
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      "text": "7. Rules Purportedly Designed to Incentivize Retail Sales",
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