Herbalife decided to change the general director

Herbalife Director General Michael Johnson will leave his post on June 1, 2017. This was reported in the press release of the organization.

The new head of Herbalife will be Richard Gudis, who is now holding the post of chief operating director. Johnson will act as chairman of the board of directors Herbalife. As a general director, Johnson has worked since 2003.

Herbalife shares after closing the auction fell by 1.7%; Additional pressure on the quotes was published by the financial report of the company for the third quarter - it follows that the Herbalife net profit for this period decreased by 6.3% to $ 87.7 million.

The decision on the changes in the Herbalife management was made several months after the organization settled the dispute with the US Federal Trade Commission (Federal Trade Commission, FTC) regarding the principles of doing business. FTC recognized that Herbalife is not a pyramid, while the company agreed to pay $ 200 million to the authorities, as well as partially restructure the business in the United States.

At the end of 2012, the manager of the Pershing Square Capital Management investment fund Bill Ekman called Herbalife “the most effective pyramid in history”, saying that the company spends more means of expanding the distributor network than actually on the sale of its products. After the statements of Ekman, the Herbalife campaign in a few days fell by more than 30%. At the same time, the investor’s prosecution was refuted. Nevertheless, American regulators took up the check of Herbalife.