The debate about whether Bill Ackman is right about Herbalife Ltd. (HLF - Get Report) continues today. Now an appeals court in Belgium has weighed in, ruling that the nutritional supplements company is not a pyramid scheme at all.
Herbalife operates within Belgium law
Herbalife Ltd. (HLF - Get Report) issued a press release today announcing the judgment from the appeals court in Belgium. The court said that the company fully complies with the law in Belgium. This is a turnaround from the previous ruling in a Belgian lower court. Test-Aankoop, a consumer organization in Belgium, had brought claims against Herbalife saying that it was a pyramid scheme, and the lower court ruled in favor of the organization.
Officials at Herbalife provided the following statement after the decision was handed down:“Herbalife always believed that the first judgment contained factual errors and was based on misinterpretations of its direct-selling sales method, and was confident that the original judgment would be overturned on appeal.”