Herbalife Reportedly Being Probed By FBI

(RTTNews) - Nutritional supplement maker Herbalife Ltd. (HLF), which has been accused of operating as a pyramid scheme by hedge fund manager William Ackman, is being probed by the Federal Bureau of Investigation, according to media reports Friday.

The Financial Times first reported the probe, saying the FBI and the U.S. Department of Justice were involved.

However, Herbalife denied having any knowledge of the probe. "We have no knowledge of any ongoing investigation by the DOJ or the FBI, and we have not received any formal nor informal request for information from either agency. We take our public disclosure obligations very seriously. Herbalife does not intend to make any additional comments regarding this matter unless and until there are material developments," the company said in a brief statement.

Herbalife has been in the spotlight since late 2012 when Ackman took a $1 billion short position on the company's shares. He called the company's business model a pyramid scheme. Billionaire investor Carl Icahn came to Herbalife's rescue and became its largest shareholder.

Herbalife revealed last month that it received a civil investigation demand from the Federal Trade Commission.

Herbalife shares closed Friday's regular trading session at $51.48, down $8.36 or 13.97, but gained 40 cents or 0.7% in after hours trading.