Herbalife Pays $123M To Resolve Criminal, Civil Charges From US Investigation Of China Business
SEC: Firm 'Failed To Detect And Prevent Improper Payments And Falsified Expense Reports'
Direct seller pays fines in settlements with SEC and DoJ on bribery and other charges but two former executives for its operations in China still face criminal charges alleging violations of the Foreign Corrupt Practices Act. They have not been arrested and have remained at large since being charged in November 2019.
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Herbalife Q4 net sales up 15.6% to $1.4bn, a company record for the period, and full-year net sales increased 13.6% as its Asia Pacific, Europe-Middle East-Africa and North America regions reached annual net sales records. USANA reports 5.4% Q4 sales growth in China as full-year sales grew 7% to $1.135bn.
"We're a growth company, well-positioned in a global trend of nutrition that the world hasn't seen before," says co-president John Agwunobi. But the direct seller's record volume increase in 2019 didn’t translate to revenue growth as China, Mexico and Central and South America pulled down results.
Herbalife executives note firm's results from China, off 21.7% including impact of currency exchange, drag on its overall results.But they emphasize firm is prepared in China to rebound from slowdown regulators imposed and exceed growth of ts other regions.