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Herbalife estimates possible FTC settlement could reach $200 million

Herbalife said its talks with the Federal Trade Commission have reached "an advanced stage."

Herbalife said its talks with the Federal Trade Commission have reached “an advanced stage.”

(Mark Boster / Los Angeles Times)
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Herbalife said Thursday that the company could pay as much as $200 million if it settles its dispute with federal trade regulators, who are investigating its business practices.

The Los Angeles nutritional supplement maker said that talks with the Federal Trade Commission have reached “an advanced stage” and the possible outcomes now include litigation or a settlement, which could involve a financial payment and also injunctive relief.

The FTC opened a probe of the company in March 2014 after billionaire investor William Ackman accused the company of running a pyramid scheme.

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Justin Cole, a FTC spokesman, said that injunctive relief -- a court order to stop certain acts -- “can be just as significant as the money obtained for consumers, and even more influential on a company’s future operations.”

The company’s shares soared as much as 13% in after hours trading.

Follow me on Twitter @MelodyPetersen

melody.petersen@latimes.com

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