Herbalife Nutrition Settles Foreign Corrupt Practices Act Violations For $122M

The resolution arises out of Herbalife (HLF)'s "scheme to falsify books and records and provide corrupt payments and benefits to Chinese government officials for the purpose of obtaining, retaining, and increasing Herbalife's business in China," the agency said.

The amount includes a criminal penalty of over $55 million and approximately $67 million to be paid to the Securities and Exchange Commission in a related matter. Herbalife entered into a deferred prosecution agreement with the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of New York in connection with a criminal information filed Friday, August 28 in the Southern District of New York charging Herbalife with one count of conspiracy to violate the books and records provision of the FCPA.

According to its admissions, between 2007 and 2016, Herbalife knowingly and willfully conspired with others in a scheme to falsify its books and records, and provide corrupt payments and benefits to Chinese government officials. Shares of Herbalife, after falling over 12% on headlines from Bloomberg about the prosecutions, are now down just 1% to $49.05.