Business ProfileforHerbalife International of America, Inc.

September 27, 2019 The following describes a Settlement Agreement that has been formally brought by a government agency. The Security and Exchange Commission alleges and charges as follows:

The Securities and Exchange Commission today announced that Herbalife Nutrition Ltd.--a direct selling company with operations in over 90 countries-- has agreed to pay $20 million to settle charges that it made false and misleading statements about its China business model in numerous U.S. regulatory filings over a six-year period.

Without admitting or denying the SEC's findings, Herbalife consented to the SEC's order finding that it violated certain antifraud and reporting provisions of the federal securities laws. The SEC's order requires Herbalife to cease and desist from further violations of the charged provisions and to pay a $20 million penalty.

To access the full Security and Exchange Commission press release, please visit: https://www.sec.gov/news/press-release/2019-195

Washington D.C., Aug. 28, 2020 --
The Securities and Exchange Commission today announced that Herbalife Nutrition Ltd. has agreed to pay more than $67 million to settle charges that it violated the books and records and internal accounting controls provisions of the Foreign Corrupt Practices Act (FCPA). In a parallel action, the U.S. Department of Justice and the U.S. Attorney's Office for the Southern District of New York today announced that Herbalife will pay a criminal fine of more than $55 million for a total of more than $123 million paid in both actions.
The SEC's order finds that Herbalife's Chinese subsidiaries made payments and provided meals, gifts, and other benefits to Chinese officials in connection with obtaining sales licenses, curtailing government investigations of Herbalife China, and removing negative coverage of Herbalife China in state-owned media. As set forth in the order, Herbalife China managers asked employees to falsify expense documents in an effort to conceal the improper payments. The order finds that Herbalife executives received reports of high travel and entertainment spending in China and violations of Herbalife's internal FCPA policies, but failed to detect and prevent improper payments and benefits and the falsified expense reports. The order further finds that the improper payments and benefits were recorded inaccurately in Herbalife's books and records and that Herbalife failed to devise and maintain a sufficient system of internal accounting controls.
Herbalife agreed to cease and desist from committing violations of the books and records and internal accounting controls provisions of the FCPA. Herbalife agreed to pay disgorgement of more than $58.6 million and prejudgment interest of more than $8.6 million, and to report on the status of its remediation and compliance measures for a three-year period.