November 2015: A judge dismissed the complaint because plaintiffs failed to adequately allege material misrepresentations or scienter (intent or knowledge of wrongdoing). The dismissal was with prejudice because plaintiffs had multiple opportunities to correct shortcomings in complaints.

August 2015: Plaintiffs filed an amended complaint.

July 2015: A federal judge dismissed the lawsuit finding, among other things, that the plaintiffs did not adequately plead that the company knew statements were false. The plaintiffs have until August 27, 2015, to file an amended complaint. (In Re Herbalife, Ltd. Securities Litigation, Case No. 14-cv-2850, C. D. CA.)

April 2014: Shareholders of Herbalife filed a class-action lawsuit against the company for allegedly making false and misleading statements regarding its business, operational, and compliance policies, in violation of federal securities laws. According to the complaint, the company operates a pyramid scheme where people make money by recruiting distributors rather than by selling products and engages in deceptive trade practices by pressuring members to purchase more products to resell as a “distributor.” The complaint also alleges that the company’s financial statements were false and misleading. (Awad et al v. Herbalife Ltd., Johnson, Walsh, DeSimone, and Goudis, Case No. 14-cv-02850, C. D. CA.).

For more information about other class-action lawsuits against Herbalife and TINA.org’s coverage of the company, click here.

For more information about pyramid schemes and TINA.org’s coverage of the issue, click here.


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When a complaint is dismissed with prejudice, it cannot be refiled.


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