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  "documentTitle": "Pershing Square | Activist Presentation Deck | 63 slides",
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  "authorName": "Pershing Square Capital Management",
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  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2014-03-01 00:00:00",
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  "pageNumber": 12,
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  "notes": "The slide uses a yellow background to highlight the core accusation of regulatory non-compliance and accounting misrepresentation.",
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      "text": "Paying multi-level royalties based upon unlimited downline levels\nPaying royalties and commissions totaling more than 30% of sales volume\nIncentivizing Distributors to recruit a potentially infinite downline in order for Distributors to reap sales-based \"Consulting Fees\"\nPermitting and incentivizing individual Distributors to recruit other participants",
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      "kind": "paragraph",
      "text": "Based upon our research in China and our examination of Herbalife's SEC filings and internal documents, we conclude that Herbalife violates China's directing-selling and pyramid-sales laws by:",
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      "kind": "paragraph",
      "text": "In addition, Herbalife's SEC filings misleadingly report its sales-based royalties and commissions as an expense called \"China Sales Employees\" in SG&A (not as Royalty Overrides, as it does for other markets), even though China commissions are calculated using the same sales-based royalty percentages as elsewhere",
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      "text": "Herbalife in China - Synopsis",
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