Herbalife Criticized As 'Pyramid Scheme' By Latino Activists

Herbalife Criticized As 'Pyramid Scheme' By Latino Activists
Herbalife Ltd. products are arranged for a photograph in New York, U.S., on Thursday, Jan. 10, 2013. Timothy Ramey, an analyst at D.A. Davidson & Co., said that Herbalife Ltd. has a legal corporate structure, rejecting hedge-fund manager Bill Ackman's theory that the direct-selling company operates as a pyramid scheme. Photographer: Scott Eells/Bloomberg via Getty Images
Herbalife Ltd. products are arranged for a photograph in New York, U.S., on Thursday, Jan. 10, 2013. Timothy Ramey, an analyst at D.A. Davidson & Co., said that Herbalife Ltd. has a legal corporate structure, rejecting hedge-fund manager Bill Ackman's theory that the direct-selling company operates as a pyramid scheme. Photographer: Scott Eells/Bloomberg via Getty Images

CHICAGO (CBS) Illinois Hispanic activists are calling the Herbalife company a pyramid scheme and a fraud that the state Attorney General should investigate.

WBBM Newsradio’s John Cody reports, Herbalife officials say it’s an honorable company, in business for 30 years, and suffering from a barrage of complaints from Pershing Square investments, which has made a billion dollar short sale bet that the company stock will drop.

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