Herbalife Reports Errors In Membership Numbers and Confessed

Herbalife Ltd. admits that it has found errors in the membership figures and that they might have been exaggerated.

Herbalife Limited made an announcement on Thursday. The nutrition company has reported errors in the number of metric members it has for over months now. The supplements organization is now making efforts to protect itself from the known investor, William Ackman and his allegations of the pyramid scheme.

The nutrition company has admitted to a miscount in its membership number, which turned out to be very bad for the business and its brand image that has already been a controversy because of Ackman’s accusations. The announcement was made on Thursday by the organization at the US Securities and Exchange Commission filing.

This can make things worse for Herbalife’s business, as it had previously been under various investigations due to the allegations made by William Ackman regarding the company’s practices. It was running an illegal scheme called the pyramid scheme. The supplement maker denied the accusations and blamed the active investor instead for the manipulation in stocks.

The nutritional products maker is now saying that the errors in the number of its active members was due to database scripting errors. The invalid numbers were given 28 times at three different earnings calls; it also believes that this would give any impact in its audited finance results. The number reported by the company showed a rise of 8.3% in 2015, now it says that the correct figure only shows an increase of 3.4%.

All Ackman has to say about this announcement is that Herbalife exaggerated the number of members it has deliberately and also that it even exaggerates the number of customers who buy the company’s products including its protein shakes and weight loss supplements. The company denies these arguments given by Ackman and blames him for stock manipulation; it looks like this blame game between these two parties is not going to end anytime soon.

The nutrition maker has refused to make further comments regarding the situation and so has William Ackman. The company before did not discover the errors in visibility in the metric when it was first used due to the limitation. The company informed in a statement. It said that it is taking necessary measures to stop such problems from happening in the future. It even believes that there might have been data collecting errors that led to errors in the number of members.

The organization exaggerated its growth of metric 14 times and said it happened 12 times instead. Furthermore, 28 errors showed different time periods.