In 1986, the company settled a case that called into question the medical claims of some of their products and their pyramid scheme-style business model. Nobel Prize-winning scientist Louis J. Ignarro was noted for creating their Niteworks® product (a mix of vitamin C, vitamin E, folic acid, lemon balm extract, α-lipoic acid, L-taurine, and L-arginine and L-citrulline), which claimed to be able to increase the functioning efficiency of all the body's major organs. Ignarro's promotion of the product caused a flap when his undisclosed ties to Herbalife were revealed after he co-authored a paper hawking the product in the Proceedings of the National Academies of Science in 2004.
In February 2016 Herbalife agree to pay a $200 million and change its business practices as a result of a legal settlement with the Federal Trade Commission. The settlement required that Herbalife track retail sales in the US (which it had not done) and require that at least two-thirds of the rewards be based on retail sales. The settlement did not resolve the accusation by billionaire investor William Ackman that Herbalife has operated as an illegal pyramid scheme.
 See also
- Herbalife homepage, start your long journey up the pyramid scheme here.
- ↑ Herbalife Agrees to Pay $850,000 Penalty, MLM Watch
- ↑ Nobel Prize Winner Didn't Disclose Herbalife Contract, Bloomberg News
- ↑ The Dubious Promotion of Herbalife's Niteworks, MLM Watch
- ↑ 4.0 4.1 4.2 Herbalife agrees to pay $200-million settlement and change its business practices by Jim Puzzanghera and Melody Petersen (July 15, 2016). Los Angeles Times.