Food Safety
search
cart
facebook twitter linkedin
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Food Safety
  • NEWS
    • Latest News
    • White Papers
  • PRODUCTS
  • TOPICS
    • Contamination Control
    • Food Types
    • Management
    • Process Control
    • Regulatory
    • Sanitation
    • Supply Chain
    • Testing and Analysis
  • PODCAST
  • EXCLUSIVES
    • Food Safety Five Newsreel
    • eBooks
    • FSM Distinguished Service Award
    • Interactive Product Spotlights
    • Videos
  • BUYER'S GUIDE
  • MORE
    • ENEWSLETTER >
      • Archive Issues
      • Subscribe to eNews
    • Store
    • Sponsor Insights
  • WEBINARS
  • FOOD SAFETY SUMMIT
  • EMAG
    • eMagazine
    • Archive Issues
    • Editorial Advisory Board
    • Contact
    • Advertise
  • SIGN UP!
News

2011 Food Safety Issue Comes Back to Haunt Herbalife

August 14, 2013

Source: Reuters

A former employee of Herbalife Ltd has been subpoenaed by the New York State attorney general to produce documents regarding a 2011 safety concern about the company's nutritional shakes, The New York Times reported on Tuesday.

The ex-employee, who is seeking whistleblower status with the U.S. Securities and Exchange Commission, asked to remain anonymous, the newspaper said. The attorney general's office declined to comment.

The Times reported that the employee first approached the U.S. Food and Drug Administration with concerns about product safety before getting in touch with activist investor Bill Ackman, who offered to pay his legal fees, according to the Times.

Ackman has made a $1 billion short bet against Herbalife, and has been a vocal critic of the company since he disclosed his short position last December. He labels the maker of nutritional supplements as a pyramid scheme.

A spokeswoman for Pershing Square Capital Management, Ackman's firm, said she did not have a comment.

The health concern in question dates to 2011, when fine shards of metal were detected in some of Herbalife's nutrition shakes at a plant in California, according to the newspaper.

The problem was resolved within several weeks, The New York Times said.

Herbalife acknowledged the 2011 incident in a statement on Tuesday, and said only safe products were shipped to consumers.

The company added it received no complaints from consumers and that California state authorities have regularly audited the factory and found "no serious violations."

"We believe this story is yet another example of Mr. Ackman's desperation," Herbalife said.

Shares of Herbalife have soared this year, causing Ackman to see losses of hundreds of millions of dollars on his bet against the company.

Ackman's view has been challenged by other Wall Street titans, including investor Carl Icahn, a major stakeholder in Herbalife, and billionaire investor George Soros, who have both taken long positions on Herbalife.

Herbalife shares closed down 2.5 percent at $64.62 on Tuesday. The shares are still trading at more than double the price where they closed on December 31, 2012.

The company last month posted better-than-expected second-quarter earnings and revised its outlook upwards, citing a fast-growing distributor network and strong demand for its products.

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • people holding baby chicks

    Serovar Differences Matter: Utility of Deep Serotyping in Broiler Production and Processing

    This article discusses the significance of Salmonella in...
    Testing & Analysis
    By: Nikki Shariat Ph.D.
  • woman washing hands

    Building a Culture of Hygiene in the Food Processing Plant

    Everyone entering a food processing facility needs to...
    Management
    By: Richard F. Stier, M.S.
  • graphical representation of earth over dirt

    Climate Change and Emerging Risks to Food Safety: Building Climate Resilience

    This article examines the multifaceted threats to food...
    Best Practices
    By: Maria Cristina Tirado Ph.D., D.V.M. and Shamini Albert Raj M.A.
Subscribe For Free!
  • eMagazine Subscription
  • Subscribe to eNewsletter
  • Manage My Preferences
  • Website Registration
  • Subscription Customer Service

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Food Safety Magazine audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Food Safety Magazine or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Deli Salads
    Sponsored byCorbion

    How Food Safety is Becoming the Ultimate Differentiator in Refrigerated and Prepared Foods

Popular Stories

Image of Tyson Foods logo and the logos of Tyson Foods brands

Tyson Foods is Reformulating Food Products to Eliminate Petroleum-Based Synthetic Dyes

USDA building.jpg

More Than 15,000 USDA Employees Take Trump Administration's Resignation Offer

Woman reading the warning label on a bottle of wine

A 40-Year Hangover: Efforts to Revive 1980s Advocacy About the Potential Negative Effects of Alcohol Consumption

Events

May 12, 2025

The Food Safety Summit

Stay informed on the latest food safety trends, innovations, emerging challenges, and expert analysis. Leave the Summit with actionable insights ready to drive measurable improvements in your organization. Do not miss this opportunity to learn from experts about contamination control, food safety culture, regulations, sanitation, supply chain traceability, and so much more.

May 13, 2025

Traceability Next Steps—Supply Chain Implementation

Live Streaming from the Food Safety Summit: Join us for this engaging and highly practical workshop focused on building and sustaining traceability efforts across the food supply chain. 

May 13, 2025

Effective Sanitation Basics

Live Streaming from the Food Safety Summit: This dynamic workshop will help participants understand the sanitation process, effective monitoring, use of data streams, and root cause analysis basics.

View All

Products

Global Food Safety Microbial Interventions and Molecular Advancements

Global Food Safety Microbial Interventions and Molecular Advancements

See More Products
Environmental Monitoring Excellence eBook

Related Articles

  • graphic depicting global connected supply chain

    CAST, IFT Publish Traceability Issue Paper to Help Industry Improve Food Safety

    See More
  • Food Safety Summit Logo

    Food Safety Summit – Keynote presentation: Back to Basics: Consumer-Focused Food Safety

    See More
  • Food Groups Push Back Against User Fees to Fund Food Safety Law

    See More
×

Never miss the latest news and trends driving the food safety industry

eNewsletter | Website | eMagazine

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Instagram
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing