Herbalife Reportedly Being Probed By NY Attorney General, Shares Rise

Shares of Herbalife (HLF) gained nearly 3% despite a New York Post report that New York Attorney General Eric Schneiderman is investigating claims the company operates a pyramid scheme.

At least two witnesses have given Schneiderman’s investigators sworn testimony, according to unnamed sources cited by the Post.

The New York AG’s office has also received complaints from former Hispanic Herbalife distributors who say they were defrauded by Herbalife, the Post reported.

Herbalife is already the subject of investigations by the Federal Trade Commission and the Securities and Exchange Commission for its business practices.

In afternoon trading, HLF was up 2.98% to $55.34.

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