Herbalife Shares Surge After Audit Finds Next To Nothing Wrong

 

JULIA LA ROCHE 

 

 
DEC. 16, 2013, 3:20 PM 7,742 6

• inShare11

REUTERS/Brendan McDermid

Herbalife just announced the completion of their financial re-audit by PriceWaterhouseCoopers.

There were no material changes.

Earlier this year, KPMG resigned as Herbalife's auditor after one of its auditors leaked non-public information to a third party. 

The stock re-opened after being halted and the market seems pleased. Shares of Herbalife were last trading up more than 9% in the afternoon session. 

Herbalife is a multi-level marketing company that sells nutritional supplements and weight loss shakes.

It's also the company that hedge fund manager Bill Ackman is short.  Ackman, who runs Pershing Square Capital, believes the company is a "pyramid scheme" and he's betting the stock will go to $0. 

His rival Carl Icahn and a number of other fund managers including George Soros and Richard Perry disagree with that thesis and are long the stock. 

Icahn is pleased with today's news. 

"I'm certainly happy about it. I'd like to say I never really doubted this was a viable company," Icahn said in a phone interview with Scott Wapner on CNBC. He added that he believed the criticism against Herbalife "was nonsense then."

Icahn continued to call this investment "sort of a no brainer." He continued to call the company "undervalued."   

Ackman still believes the company is a "pyramid scheme."

"It is not the role of Herbalife’s auditor to determine if the company is a pyramid scheme.  Rather, that determination depends on whether distributors earn more from recruiting new distributors than from retail sales to consumers who are not distributors.  The few Herbalife distributors that make money earn the vast majority of their profits from recruiting.  Herbalife is a pyramid scheme that will be shut down by regulators," Ackman said in a statement. 

Herbalife's stock has skyrocketed since Ackman publicly declared his short position late last year.  Shares are up more than 60% then. 

Here's the press release from today's audit announcement: 

Global nutrition company, Herbalife (NYSE: HLF), today announced that PricewaterhouseCoopers LLP, Herbalife's independent registered public accounting firm ("PwC"), has completed its re-audit of the Company's consolidated financial statements for the fiscal years ended December 31, 2010, 2011 and 2012, and the audit of the effectiveness of the Company's internal control over financial reporting as of December 31, 2012.

Today, the Company filed an amended 10-K/A for the fiscal year ended December 31, 2012, following the completed re-audit of the Company's 2010, 2011 and 2012 financial statements. Additionally, the Company today filed amended 10-Q/As for each of these quarters of 2013 following the completion of SAS 100 reviews of those periods by PwC. With these amended filings, the Company is now up to date with its SEC periodic filings. There were no material changes to the Company's audited 2010, 2011 or 2012 financial statements included in the amended 10-K/A or to the Company's first, second or third quarter 2013 financial statements included in the amended 10-Q/As as compared with the Company's previously filed financial statements for and as of each of such periods1.

As previously announced, the change in the Company's independent auditors to PwC, and the corresponding need to perform re-audits, was the result of the resignation of Herbalife's former independent auditor, KPMG LLP ("KPMG") due to the impairment of KPMG's independence resulting from its now former partner's unlawful activities. As previously publicly stated by KPMG, their resignation was not related to Herbalife's financial statements, its accounting practices, the integrity of Herbalife'smanagement, or any other reason.

Here's a chart: 

Yahoo! Finance

Read more: http://www.businessinsider.com/herbalife-halted-2013-12#ixzz2nugTyOm4

Ageless beauty: how to look your best at every age

 04 Dec 2013   Posted by Jacquie Carter, beauty expert  1 Comment

Skin changes as the years go by – and your skin care routine should change with it! Here are my quick tips to help you look your best at every age.

Let’s face the music: aging is inevitable! No matter how much we try to convince ourselves otherwise, the clock is going to keep on ticking and our skin is going to age. But this isn’t necessarily a bad thing – and you can practice healthy skin care habits that will keep you looking your best no matter what your age.

We all know that our skin changes as we age, but what’s exactly happening? The skin is a remarkable organ; its ability to regenerate itself really is a wonder. New cells are constantly forming, but cells regenerate at a slower pace as we get older. Because of this, you may notice your skin texture changing over the decades. Skin becomes thinner as the years go by, and you may see more age spots. These are actually areas of hyperpigmentation caused by UV rays – another reason why it’s so critical to wear sunscreen at every age!

Our skin also loses some of its natural elasticity as the years go by, leading to sagging and wrinkles. Compounding the problem is the loss of lipids (fatty acids) over time, which are responsible for keeping skin moisturized – meaning your moisture needs will change over time.

We have to face it: our skin care needs are going to change as we age. What worked for you in your 20s is probably not going to be as effective after a decade or two! On the other hand, we’re so inundated with “anti-aging” products that it’s easy to get ahead of ourselves when it comes to developing an effective skin care routine. Whether you’re 20, 30, 40, 50, 60, or beyond, it’s important to choose a regime and products that are appropriate for your age and skin type. Here’s some of my favorite beauty advice for beautiful skin at every age:

Skincare in your 20s:

If you haven’t already started a beauty regimen, now’s the time! It’s important to get into a habit of developing a good skin care routine early on because it will help you look your best for years.

You may be seeing changes to your skin since you’re coming out of your teenage years and your hormones may be changing. Your skin will continue to adjust throughout your 20s, so take some time to figure out what your skin type is and choose your beauty regimen accordingly.

Some simple lifestyle changes can help, too. Late nights out and too much time in the sun can affect the appearance of your skin. Start wearing sunscreen daily if you don’t already do so, because this will help your skin remain elastic and supple. And while it’s tempting to stay out late socializing, try to limit your late nights so you can look your best during the day.

Skincare in your 30s:

This is when you may start noticing the signs of aging. Your skin starts to lose collagen and elastin and a few fine lines might make their debut on your face. You may need to change your beauty regimen to include more moisturizing products.

It’s common to start seeing signs of aging around your eyes, too. This is the decade when you should consider adding an extra step in your beauty regimen to focus specifically on the skin around your eyes.

Want a quick tip to avoid encroaching laughter lines? Wear big sunglasses! The bigger, the better in my book.  If you choose shades with UVA and UVB protection then you’ll be keeping more of your face covered and protected from the sun. And, the best thing about shades is that they reduce the likelihood of squinting.  Squinting is not a good look, so throw on some shades when you’re outdoors or driving and you could delay eye wrinkles. (By the way, isn’t ‘laughter lines’ a much nicer phrase than ‘crow’s feet’?)

Skincare in your 40s:

In your 40s, uneven skin tone is one of the most common complaints women have. This can be caused by too many hours in the sun with resulting age spots (so keep up your sunscreen routine!). It can also be a throwback to pregnancy which leaves some women with melisma (also known as the mask of pregnancy).

Other hormonal changes during this decade and the possible onset of menopause could leave you wondering where your youthful skin went. At this time, it’s best to visit your dermatologist for suggestions and possible treatments for your changing skin that will help you look and feel your best.

Many women in their forties feel confident that they have their skincare regime nailed down so it’s a pain to realize that you may have to adapt and evolve. Happily enough, small changes do add up so you may need only a few tweaks to regain control of your skin.

Skincare in your 50s – and beyond:

A crucial element to skincare as you age is moisturizing! By the time you hit your 50s, skin is losing its elasticity and you may start to see sagging. Though you can’t turn back the clock, you can keep your skin (and yourself) hydrated!

It’s also worth reviewing your cosmetics. If you’ve been wearing the same makeup look for a few decades, then it’s probably time to freshen up your style.  Many women complain that their eyes appear smaller, so think carefully about your eye make up.  While mascara is a brilliant tool, you may want to switch from a hard black to a softer brown and work to emphasis your eyes in a more nuanced manner. Don’t forget my love of eyelash curlers too – they can turn a beauty bad day around!

***

We can’t stop aging, but we can age gracefully and beautifully. If the fountain of youth existed, it would probably have something to do with attitude. If you feel beautiful, that confidence will show in your appearance – no matter what your age!

For more skin care advice for every age, take a look at my short video: “Tips to prevent premature aging”

http://www.youtube.com/watch?feature=player_embedded&v=XyC70pt76TQ&list=PLB3ZV-mBfQYwtlHgum1VwarKQTENgVAnn

Written by beauty expert, Jacquie Carter. Jacquie is Director of Outer Nutrition at Herbalife.

« Winter beauty woes? 6 winter skin care rules to help you look and feel flawless

Hair Removal 101 – What’s the best way to remove unwanted hair? »

Dieting, body confidence & weddings – how to take back control

 17 Dec 2013   Posted by Susan Bowerman, MS, RD, CSSD, FAND  7 Comments

Drop pounds and look great on your wedding day by taking a sensible approach. With her wedding fast-approaching, our real reader “Betty” seeks advice on how she can safely drop some weight before the big day.

Every bride wants to look and feel her best on her wedding day. And for most women, getting ready for the ‘big day’ involves dieting – in a 2008 survey¹ of nearly 300 brides-to-be, a full 70% were trying to lose weight before their wedding. So when our real reader, “Betty” asked for help getting into shape for her big day, we were more than happy to help. Getting in shape for any big event – whether it’s a wedding or a high school reunion – is something we thought many of you could relate to, which is why we were so pleased that Betty allowed us to share her story.

About our real reader, “Betty”

Betty’s plans are taking her from her adopted home in the UK (she moved there from Australia 10 years ago) all the way to a destination wedding in Thailand…and it’s fast approaching. The date is set for the end of January 2014 – just weeks away. When Betty arrived in the UK nearly 10 years ago, she weighed a bit over 200lbs (95kg/14.9st) but she carried it well on her tall frame. Fast forward to December, 2013, and she’s a busy mother of a 16 month old daughter, and she’s carrying around an extra 65lbs (30kg/5.5st). And while she’d like to get back to her weight of 10 years ago, “I am realistic,” she said. “I’m not expecting to lose (all my weight) before the wedding… I would just like to lose as much as reasonable … before that date.”

How much can she lose before the wedding?

Betty knows she can’t drop 65 pounds between now and her wedding day – she just wants to lose what she can, especially around her midsection. With a lean body mass measuring about 140lbs (about 64.5kg/10st), Betty’s got a decent resting metabolic rate of about 1900 calories per day (since each pound of lean mass burns almost 14 calories per day). I estimate that if Betty exercises regularly and is reasonably diligent in following a 1200 calorie diet, she should be able to lose about 2lbs (1kg) a week.

Dieting – what works and what doesn’t

Before becoming pregnant with her daughter, Betty and her fiancé went on a low carbohydrate diet together. Initially, things went well. She lost over 40lbs (19kg/2.8st) and he lost nearly 70lbs (32kg/5st). But, while her partner managed to keep a good amount of his weight off, “I was not so lucky,” she said, adding that she “put some weight on” after her daughter arrived.

When I asked Betty to describe a typical day of eating to me, she reeled off a pattern I have heard so many times – her day starts out great but things gradually come apart towards evening. A healthy breakfast (cereal and milk, or porridge with agave honey) is followed by lunch – frequently in a restaurant with girlfriends, and it tends to be “not so healthy…fries…(and) something with mayo or cheese.” By the afternoon, Betty is grazing on “anything and everything, but not necessarily because I’m hungry. “ Boredom or a bad mood brings on cravings for cake, chocolate, cookies and chips. Dinner is usually home-cooked, but tends toward meats and carbs – “burritos, burgers, chilli with rice”

How to – sensibly – lose weight for your wedding

Betty has a good handle on her situation. She doesn’t want a wedding diet she wants to take back control of her eating. Betty has a good idea of how much weight she can realistically – and safely – lose before her wedding, and she also admits that she knows where her problems lie. “I know what I should be doing,” she says, “I just don’t seem to think about it on a day-to-day basis”. So, I suggested that she start with a few changes that would be easy to do right away, and yet help her start to see results relatively quickly. Here are five tips I gave her to start:

1. Replace two meals a day with a protein shake

I suggested that Betty replace breakfast and lunch with a protein shake. While her usual breakfast is reasonably healthy, it doesn’t contain enough protein to keep her satisfied until lunch – and that could be leading her to make poor choices when she’s out “with the girls”. Rather than giving up time with her girlfriends, I suggested she have a shake before meeting up, then socializing over a green salad with a little dressing on the side, or a broth-based soup.

2. Emphasize lean proteins and more vegetables at dinner

Since Betty usually cooks dinner at home, she has a lot of control over what she eats, and how much. I suggested that she emphasize lean proteins – poultry breast and fish – and have both a vegetable salad and cooked vegetables to round out her meal. In the short term, I advised her to limit her starch to one small portion – and try to choose whole grains.

3. Have a planned, healthy snack in the afternoon

A well-planned snack in the afternoon can help take the edge off Betty’s hunger at dinner time. And, it’s also a great time to sneak in some extra fruits and vegetables that her diet currently lacks. Rather than grazing on sweets or chips, I suggested she try a protein-based snack, such as a small carton of yogurt, a protein snack bar, some raw veggies with hummus or a little bit of cottage cheese with fruit.

4. Add fruit to protein shakes

Betty told me that while she likes fruit, she doesn’t eat that much. Since she needs two or three servings a day, I suggested she add fruit to her shakes, which will have her daily fruit needs more or less covered.

5. Start keeping a food diary

I asked Betty to start logging her food intake for a couple of reasons. For one thing, it will help her to keep her calories in check. But it can also help her with her emotional eating, too. When she gets the urge to soothe herself with food, I suggested she pull out her food diary and write down how she’s feeling instead. If she can delay the urge to eat – even if only by a few minutes – the hunger for a snack is likely to pass.

We’ll be checking in with Betty regularly, and we’ll keep you posted on her progress. If you have any tips or words of encouragement, please send them along!

¹Neighbors LA, Sobal J.Appetite.50:550, 2008.

Written by Susan Bowerman, MS, RD, CSSD, FAND. Susan is a paid consultant forHerbalife.

How to Avoid Holiday Weight Gain

The average person will gain weight during the holidays. That’s just the way it goes. Not only do we usually consume more food during the holidays, but we’re also exercising less, sleeping less, and most of us are stressed out a lot more.

This is the recipe for the perfect storm, and your waistline can easily expand during the holiday season. It you’re interested in keeping the weight off, it’s important that you focus on the task at hand and approach the holidays with a sense of control. Without it, you could be looking at a new wardrobe consisting of black shirts and sweatpants!

Avoiding the Holiday Weight Gain

Tally Up! For most of us, this isn’t our first rodeo. We know where we’re going to spend the holidays, and we usually know what types of foods will be available. This is where your will power and determination come into play. Take a tally of where you’re going, what you will be eating (or not eating, more specifically), and plan your outing.

Stay Sober! A lot of the weight adults’ gain during the holidays comes from drinking alcoholic drinks. How does liquor pack on the pounds? Well, can anyone say “eggnog”? That’s right; a concoction like this is loaded down with sugar and fat – most holiday drinks are. Opt for water – you’ll be glad you did.

Snacking Healthy! One of the biggest reasons people gain weight during the holidays is that they’re eating sugary foods. With grandma’s pie on the table, dad’s homemade candies, and about a dozen other sweet treats, you can just be walking by to get a glass of water and suddenly end up with a mouthful of sugar! Eat instead a small and healthy snack and also be sure to drink plenty of water.
Of course you’re going to want to snack. It’s just natural. When you get that urge, however, be sure to snack healthy. Go ahead and grab a turkey sandwich on wheat with some fresh veggies on that. Satisfy your cravings in a healthy way.

October 28, 2013

Herbalife Announces Appointment of Dr. Richard H. Carmona — 17th Surgeon General of the United States (2002-2006) — to Board of Directors

LOS ANGELES--(BUSINESS WIRE)-- Herbalife (NYSE:HLF) today announced the appointment of Richard H. Carmona, M.D., M.P.H., FACS, and 17th Surgeon General of the United States, to the Company's Board of Directors, effective October 25, 2013. Dr. Carmona brings more than 40 years of experience in medicine, nutrition, preventative health and business to the Herbalife Board.

DR. RICHARD H. CARMONA - 17th SURGEON GENERAL OF THE UNITED STATES (2002-2006) (Photo: Business Wire)

Dr. Carmona joins as an independent Director. With his appointment, Herbalife has increased the size of its Board to 12 members, 9 of whom are independent.

"As a scientist and medical professional, I was first attracted by the depth and breadth of Herbalife's commitment to excellence in nutrition science," said Carmona. "As a business person, my due diligence showed me a company of integrity with a good business plan. As the son of poor emigrant parents, I am elated to see the opportunities Herbalife offers to families in health-disparate and economically underserved communities."

"Dr. Carmona has dedicated his life to improving the relationships among health, culture, education and economic status, and we are pleased to welcome him to Herbalife's Board of Directors," saidMichael O. Johnson, chairman and chief executive officer of Herbalife. "As a Surgeon General ofthe United States, a distinguished professor of public health, and an experienced business leader, Richard will be a tremendous addition to our Board. We look forward to leveraging his expertise in our ongoing initiative to ensure the nutritional benefits of all Herbalife products and our continued efforts to empower our distributors around the world."

About Dr. Richard H. Carmona

Dr. Carmona currently serves as the first Distinguished Professor of Public Health at the University of Arizona, and the first Distinguished Professor of Health Promotion and Entrepreneurship at TheOhio State University. He is President of the nonprofit Canyon Ranch Institute Board of Directors inTucson, Arizona and vice chairman of Canyon Ranch. He serves on the boards of other public companies including The Clorox Company and Taser International, and works in leadership and advisory roles helping to create businesses in emerging science and technology.

Born to a poor Hispanic family in New York City, Dr. Carmona experienced homelessness, hunger, and health disparities during his youth. The experiences greatly sensitized him to the relationships among culture, health, education and economic status and shaped his future.

In 1967, Dr. Carmona enlisted in the U.S. Army and went on to become a combat-decorated Special Forces Vietnam veteran. After leaving active duty, he attended Bronx Community College of the City University of New York, where he received an associate's degree. He then attended theUniversity of California, San Francisco, where he received a bachelor's degree (1977) and medical degree (1979).

Trained in general and vascular surgery, Dr. Carmona also completed a National Institutes of Health-sponsored fellowship in trauma, burns, and critical care. He went on to become the chairman of the State of Arizona Southern Regional Emergency Medical System, a professor of surgery, public health and family and community medicine at the University of Arizona, and the Pima County Sheriff's Department surgeon and deputy sheriff.

In 2002, Dr. Carmona was nominated by the President and unanimously confirmed by the United States Senate to become the 17th Surgeon General of the United States. Dr. Carmona was selected because of his extensive experience in public health, clinical sciences, health care management, preparedness, and his commitment to prevention as an effective means to improve public health and reduce health care costs while improving the quality and quantity of life. In 2006, Dr. Carmona successfully completed the statutory four-year term.

Dr. Carmona has published extensively and received numerous awards, decorations, and local and national recognitions for his achievements. A strong supporter of community service, he has served on community and national boards and provided leadership to many diverse organizations.

About Herbalife Ltd.

Herbalife Ltd. (NYSE:HLF) is a global nutrition company that sells weight-management, nutrition and personal care products intended to support a healthy lifestyle.Herbalife products are sold in more than 80 countries to and through a network of independent distributors. The company supports the Herbalife Family Foundation and its Casa Herbalife program to help bring good nutrition to children. Herbalife's website contains information about Herbalife, including financial and other information for investors at http://ir.Herbalife.com. The company encourages investors to visit its website from time to time, as information is updated and new information is posted.

FORWARD-LOOKING STATEMENTS

This document contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words "may," "will," "estimate," "intend," "continue," "believe," "expect" or "anticipate" and any other similar words.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed or incorporated by reference in our filings with the Securities and Exchange Commission. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, among others, the following:

• the resignation of our former independent registered public accounting firm, its withdrawal of its audit reports with respect to certain of our historical financial statements, any difficulties PricewaterhouseCoopers LLP, our successor accounting firm encounters in the re-audits of such relevant historical financial statements or any material modifications to such historical financial statements PricewaterhouseCoopers LLP believes should be made as a result of such re-audits;
• any collateral impact resulting from the ongoing worldwide financial environment, including the availability of liquidity to us, our customers and our suppliers or the willingness of our customers to purchase products in a difficult economic environment;
• our relationship with, and our ability to influence the actions of, our distributors;
• improper action by our employees or distributors in violation of applicable law;
• adverse publicity associated with our products or network marketing organization, including our ability to comfort the marketplace and regulators regarding our compliance with applicable laws;
• changing consumer preferences and demands;
• our reliance upon, or the loss or departure of any member of, our senior management team which could negatively impact our distributor relations and operating results;
• the competitive nature of our business;
• regulatory matters governing our products, including potential governmental or regulatory actions concerning the safety or efficacy of our products and network marketing program, including the direct selling market in which we operate;
• legal challenges to our network marketing program;
• risks associated with operating internationally and the effect of economic factors, including foreign exchange, inflation, disruptions or conflicts with our third party importers, pricing and currency devaluation risks, especially in countries such as Venezuela;
• uncertainties relating to the application of transfer pricing, duties, value added taxes, and other tax regulations, and changes thereto;
• uncertainties relating to interpretation and enforcement of legislation in China governing direct selling;
• uncertainties relating to the interpretation, enforcement or amendment of legislation in India governing direct selling;
• our inability to obtain the necessary licenses to expand our direct selling business in China;
• adverse changes in the Chinese economy, Chinese legal system or Chinese governmental policies;
• our dependence on increased penetration of existing markets;
• contractual limitations on our ability to expand our business;
• our reliance on our information technology infrastructure and outside manufacturers;
• the sufficiency of trademarks and other intellectual property rights;
• product concentration;
• changes in tax laws, treaties or regulations, or their interpretation;
• taxation relating to our distributors;
• product liability claims;
• whether we will purchase any of our shares in the open markets or otherwise; and
• share price volatility related to, among other things, speculative trading and certain traders shorting our common shares.

We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

December 9, 2013

Herbalife Announces Appointment of Maria Otero — Humanitarian, Business Leader and Former U.S. Under Secretary of State — to Board of Directors

LOS ANGELES--(BUSINESS WIRE)-- Global nutrition company, Herbalife (NYSE: HLF), today announced the appointment of Maria Otero to the Company's Board of Directors, effective December 7, 2013. Otero has spent an illustrious career focused on tackling poverty and empowering those less fortunate around the world, and her leadership, experience and insight will be a valuable addition to the Herbalife Board.

Otero joins as an independent Director. With her appointment, Herbalife has increased the size of its Board to 13 members, 10 of whom are independent.

"For more than 30 years, I have focused on helping individuals empower themselves through work, so they can take control of their own lives. I have seen first-hand the power of giving those individuals and entire communities the chance to realize their potential," said Otero. "Having spent a lot of time getting to know Herbalife, I am convinced this is a company that shares my belief in the positive impact that economic empowerment can bring to society."

"Throughout a career focused on helping others, Maria has shown what can be achieved if people are just given the opportunity. She is a recognized leader in the field of micro-enterprise, and we are delighted to welcome her to Herbalife's Board of Directors," said Michael O. Johnson, chairman and chief executive officer of Herbalife. "Maria will be a tremendous addition to our Board, and we look forward to leveraging her unparalleled knowledge and insight towards a shared goal of providing an equal and accessible opportunity to everyone who needs it."

About Maria Otero

Otero currently serves on the Council on Foreign Relations and serves on the boards of Kresge Foundation, Public Welfare Foundation and Development Alternatives Inc.. She has chaired the board of Bread for the World, and also served on the boards of the Calvert Foundation, U.S. Institute for Peace, the Inter-American Foundation and BRAC in Bangladesh.

Born in La Paz, Bolivia, as one of nine children, Otero came with her family to the U.S. when she was 12 years old. Although her initial studies in English literature were chosen with a career in academia in mind, it was her brother who convinced her that her future lay in helping others. She decided that if she was going to tackle poverty around the world she would study economics, and she also returned to Bolivia to improve her knowledge of the Latin American reality. She returned to the United Statesto complete graduate work at the Johns Hopkins School of Advanced International Studies, where she earned her Masters.

In her early career, Otero became a program officer at the Inter-American Foundation and worked for five years at the Center for Population and Development Activities. Otero also worked as an economist for Latin America and the Caribbean in the Women in Development Office of USAID.

In 1986, Otero joined Accion, one of the first micro lending organizations in the world, as country director in Honduras. She returned to the United States in 1989 to start and direct the Washington, D.C., office. In that position, she worked with the U.S. government and nonprofits to develop policies that helped families in the developing world earn money through small businesses. A typical microfinance program extends a small amount of credit, usually with no collateral, to people or organizations that would not normally qualify for loans. Otero was named Accion's vice president in 1994, and president and CEO of Accion International six years later. The nonprofit organization operates in 26 countries and is recognized as a global leader in microfinance and economic development.

In 2000, President Clinton appointed Otero to the board of the United States Institute of Peace, where she served for eight years. In 2006 she was appointed by Secretary General Kofi Annan to the U.N. Advisors Group on Inclusive Financial Sectors. In June 2009, Otero was nominated to serve as under secretary for Democracy and Global Affairs, which made her the highest ranking Hispanic official at the State Department, and the first Latina under secretary in its history. In this position, Otero was charged with helping shape the State Department's positions on human rights, climate change, global health, refugees, trafficking in persons and women's issues. She oversaw the Bureau of Democracy, Human Rights and Labor; the Bureau of Oceans, Environment, and Scientific Affairs; the Bureau of Population, Refugees and Migration; the Office to Monitor and Combat Trafficking in Persons; and the Office of the Science and Technology Advisor to the Secretary.

On January 17, 2012, Secretary Clinton named Maria Otero as under secretary for Civilian Security, Democracy, and Human Rights, a newly created office and position at the State Department. During her time at the Department of State, Under Secretary Otero also served as the President's Special Coordinator for Tibetan Issues.

Otero's awards and recognition include selection by Newsweek in October 2005 as one of the United States' 20 most influential women; Hispanic Business Magazine's ‘Elite Women of 2007'; Notre Dame University's Distinguished Service in Latin America Award; National Council of la Raza Graciela Olivarez Award; and the Ellis Island Medal of Honor.

Otero holds an M.A. in literature from the University of Maryland; an M.A. in international relations from the Paul H. Nitze School of Advanced International Studies (SAIS), at the Johns Hopkins University; and an honorary Doctorate of Humane Letters from Dartmouth College.

About Herbalife Ltd.

Herbalife Ltd. (NYSE:HLF) is a global nutrition company that sells weight-management, nutrition and personal care products intended to support a healthy lifestyle.Herbalife products are sold in more than 90 countries to and through a network of independent distributors. The company supports the Herbalife Family Foundation and its Casa Herbalife program to help bring good nutrition to children. Herbalife's website contains information about Herbalife, including financial and other information for investors at http://ir.Herbalife.com. The company encourages investors to visit its website from time to time, as information is updated and new information is posted.

FORWARD-LOOKING STATEMENTS

This document contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words "may," "will," "estimate," "intend," "continue," "believe," "expect" or "anticipate" and any other similar words.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed or incorporated by reference in our filings with the Securities and Exchange Commission. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, among others, the following:

• the resignation of our former independent registered public accounting firm, its withdrawal of its audit reports with respect to certain of our historical financial statements, any difficulties PricewaterhouseCoopers LLP, our successor accounting firm encounters in the re-audits of such relevant historical financial statements or any material modifications to such historical financial statements PricewaterhouseCoopers LLP believes should be made as a result of such re-audits;
• any collateral impact resulting from the ongoing worldwide financial environment, including the availability of liquidity to us, our customers and our suppliers or the willingness of our customers to purchase products in a difficult economic environment;
• our relationship with, and our ability to influence the actions of, our distributors;
• improper action by our employees or distributors in violation of applicable law;
• adverse publicity associated with our products or network marketing organization, including our ability to comfort the marketplace and regulators regarding our compliance with applicable laws;
• changing consumer preferences and demands;
• our reliance upon, or the loss or departure of any member of, our senior management team which could negatively impact our distributor relations and operating results;
• the competitive nature of our business;
• regulatory matters governing our products, including potential governmental or regulatory actions concerning the safety or efficacy of our products and network marketing program, including the direct selling market in which we operate;
• legal challenges to our network marketing program;
• risks associated with operating internationally and the effect of economic factors, including foreign exchange, inflation, disruptions or conflicts with our third party importers, pricing and currency devaluation risks, especially in countries such as Venezuela;
• uncertainties relating to the application of transfer pricing, duties, value added taxes, and other tax regulations, and changes thereto;
• uncertainties relating to interpretation and enforcement of legislation in China governing direct selling;
• uncertainties relating to the interpretation, enforcement or amendment of legislation in India governing direct selling;
• our inability to obtain the necessary licenses to expand our direct selling business in China;
• adverse changes in the Chinese economy, Chinese legal system or Chinese governmental policies;
• our dependence on increased penetration of existing markets;
• contractual limitations on our ability to expand our business;
• our reliance on our information technology infrastructure and outside manufacturers;
• the sufficiency of trademarks and other intellectual property rights;
• product concentration;
• changes in tax laws, treaties or regulations, or their interpretation;
• taxation relating to our distributors;
• product liability claims;
• whether we will purchase any of our shares in the open markets or otherwise; and
• share price volatility related to, among other things, speculative trading and certain traders shorting our common shares.

We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.