April 15 New York Attorney General Eric
Schneiderman is investigating nutrition and weight loss company
Herbalife Ltd over claims it is a pyramid scheme, the
New York Post reported late Monday.
Representatives for both Herbalife and the Attorney
General's office did not immediately respond to a request for
The New York Post said that at least two whistleblowers have
come forward and given Schneiderman's investigators sworn
testimony, citing unnamed sources.
Last week, sources familiar with the matter told Reuters
that the U.S. Federal Bureau of Investigations was probing
Herbalife. A month before that, Herbalife confirmed that the
Federal Trade Commission had issued a civil investigative demand
to the company to look more closely at how it works.
The company has steadfastly denied running a pyramid scheme,
where distributors earn more money for recruiting new members
into the scheme than they do by selling products to consumers.
Shares were down 3 cents to $53.72 in premarket trading.
(Reporting by Phil Wahba in New York)