Our securities attorneys are investigating claims on behalf of investors of Herbalife Ltd. (NYSE: HLF) regarding whether Herbalife and certain of its officers and/or directors violated federal securities laws. The company’s share price dropped by more than 7% in intraday trading on June 5, 2017, following news that it was unexpectedly lowering its sales guidance.
Herbalife Cuts Sales Forecast
On June 5, 2017, Herbalife announced that it was lowering its sales guidance due to new Federal Trade Commission regulations that will hurt its sales more than expected. This news comes just one month after the company announced it was raising its guidance, which drove the stock price up more than 50% year-to-date through Friday, June 2, 2017.
Key Executives Depart
Several insiders at Herbalife sold stocks and options in the past month, and according to a recent blog, some executives, including general counsel Mark Friedman, have left the company, but the company has failed to disclose this fact to investors.
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Girard Gibbs LLP is one of the nation’s leading firms representing individual and institutional investors in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and has earned Tier-1 rankings and been named in the U.S. Lawyers – Best Law Firms list for four consecutive years.