Portland, Ore. • Herbalife Ltd. says that it is facing an inquiry from the Federal Trade Commission.
The nutrition and supplement company's shares initially plunged more than 12 percent following a brief halt in trading pending the announcement.
Herbalife said that it received the civil investigative demand from the FTC on Wednesday. The FTC's website says that these are used to investigate possible "unfair or deceptive acts or practices." A representative from the FTC was not immediately available to elaborate. The company, which has faced accusations of operating a pyramid scheme, said that it welcomes the inquiry given the "tremendous amount of misinformation in the marketplace" about its business.