LOS ANGELES, Calif. - Herbalife is facing an inquiry from the Federal Trade Commission.
The nutrition and supplement said Wednesday that it received the civil investigative demand from the FTC on Wednesday. A representative from the FTC was not immediately available to comment.
Herbalife says it welcomes the inquiry, noting a "tremendous amount of misinformation in the marketplace" about its business. The company says it believes it is in compliance with all laws and regulators and plans to co-operate fully.
The company announced this just a day after hedge fund manager William Ackman renewed his attacks on the company. Ackman has repeatedly has bet against the company and repeatedly said he believes it operates as a pyramid scheme.
Herbalife Ltd.'s shares plunged more than 12 per cent after a suspension in trading was lifted.