The Federal Bureau of Investigation and the U.S. Department of Justice have launched a criminal investigation into Herbalife, according to reports from the Financial Times and CNN. This new probe follows an existing civil investigation by the Federal Trade Commission into the multi-level marketing company.
Herbalife, however, stated it had no knowledge of any ongoing investigation by the DOJ or FBI. The company reported it had not received any formal or informal request for information from either agency. Herbalife publicly disclosed the FTC investigation earlier.
A criminal investigation elevates the potential legal stakes significantly for Herbalife. Such probes often examine specific allegations of fraud or other illicit activities, targeting individuals or corporate entities.
The involvement of the DOJ could signal a joint task force probe, indicating authorities are building a case. While the FTC civil inquiry likely focuses on the company's business practices and compliance with consumer protection laws, a criminal investigation would target individuals at management level or top affiliates.
Specific details regarding the nature of the criminal inquiry remain limited. The FBI declined to comment when contacted by the Financial Times. A law enforcement official confirmed to CNN that the U.S. Attorney's Office in Manhattan and the FBI have been investigating Herbalife for several months.