Active new members increased by 3.2% worldwide during the fourth quarter compared to the past year, not the 16.7% the company had previously reported on a February 25 conference call, according to a regulatory filing, Bloomberg reports.
Among other errors, the US active new members figure was corrected to 30.7% growth from 71%, and in Europe, the Middle East and Africa active new member growth was corrected to 17.7% from 44%. For the third quarter, North America active new member growth was corrected to 1.8% from 33%.
All of those revisions forced Herbalife's share price down 7% near the close of trading today.
Moreover, it probably gives Hedge Fund Manager Bill Ackman more ammunition in his quest to discredit and destroy the direct sales company, which markets oral care and skin care products, in addition to its primary nutritional supplement business.