NEW YORK (TheStreet) -- Shares of Herbalife Ltd. (HLF) are down -2.45% to $64.04 in heavy trading volume as Bill Keep, the business dean of the College of New Jersey and a trial expert on pyramid schemes, urged SEC Chairman Mary Jo White to conduct ongoing reviews of the growing MLM industry and recommended that companies submit their enforcement policies to regulators every five years, the New York Post reports.
The SEC should ratchet up its scrutiny of Herbalife and other multilevel marketing companies to ensure that their distributors aren't violating anti-pyramid scheme laws, Keep said.
In his letter to White, Keep called out Herbalife, which is being probed by the SEC and other regulators over pyramid scheme allegations, for its "attempts to distance the company from distributor behaviors," the Post said.
TheStreet Ratings team rates HERBALIFE LTD as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HERBALIFE LTD (HLF) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."