July 31, 2015
A Federal District Court Judge in the Central District of California this week threw out a lawsuit against Herbalife, Ltd. (“Herbalife”), which alleged that Herbalife had violated federal securities laws by misrepresenting various aspects of its business operations. This is the second amended complaint that has been dismissed by the Judge in this action. We have previously advised readers about the dismissal of the first amended complaint, which focused on broadly-framed alleged misrepresentations concerning Herbalife’s status as a legitimate multi-level marketing company or, as the plaintiff alleged, an illegal pyramid scheme.
Why did the Court dismiss the second amended complaint against Herbalife?