Herbalife agreed to pay disgorgement of $58.66 million and prejudgment interest of $8.64 million. The company also agreed to engage in remedial and compliance measures for a period of three years and report the status of its remediation.
Separately, the company entered into a three-year deferred prosecution agreement (DPA) with the DOJ, in which it admitted accountability for criminal conduct related to certain findings of the SEC in its Order,
Herbalife agreed to a criminal fine of $55.73 million as part of its agreement with the Justice Department. The company also agreed to cooperate in any ongoing or future investigations concerning its business, executives, employees, or agents.
Meanwhile, Acting U.S. Attorney Audrey Strauss of the Southern District of New York said “As admitted in the deferred prosecution agreement…Herbalife approved the extensive and systematic corrupt payments to Chinese government officials over a 10-year period to promote and expand Herbalife’s business in China.”
