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  "documentTitle": "Pershing Square | Activist Presentation Deck | 48 slides",
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  "authorName": "Pershing Square Capital Management, L.P.",
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  "presentationDate": "2016-07-01 00:00:00",
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  "notes": "The slide relies on legal precedent/complaint language to frame the business model as deceptive.",
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      "kind": "callout",
      "text": "Herbalife and its distributors systematically engage in deceptive representations to recruit prospective distributors",
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      "text": "Not surprisingly, distributors ultimately abandon the business opportunity in large numbers",
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      "text": "In light of their poor financial results, many Distributors either stop buying product or leave the organization altogether, resulting in a high turnover rate.",
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      "text": "Retention for non-Sales Leaders, many of whom are pursuing the business opportunity, is even worse. An analysis of Defendants’ data shows that the majority of Distributors stop ordering Herbalife products within their first year, and nearly 50% of the entire Herbalife U.S. Distributor base quits in any given year.",
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      "text": "In numerous instances in connection with the advertising, marketing, promotion, offering for sale, or sale of the right to participate in the Herbalife program, Defendants have represented, directly or indirectly, expressly or by implication, that consumers who become Herbalife Distributors are likely to earn substantial income. In truth and in fact... consumers who become Herbalife Distributors are not likely to earn substantial income.",
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      "text": "(1) FTC v. Herbalife International of America, Inc., et al. (July 15, 2016). Case No.2:16-cv-05217, Complaint for Permanent Injunction and Other Equitable Relief, at p.39. (2) Id., at p.23. (3) Id.",
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      "text": "Herbalife – A False Business Opportunity",
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