NEW YORK >> Shares of Herbalife surged more than 9 percent Friday after disclosing that it is in advanced talks to settle a federal investigation into claims it essentially operates as a pyramid scheme.
It’s a claim that has dogged Herbalife for years and set off what has become an epic battle with activist investor Bill Ackman, who has been waging a campaign against the company since late 2012.
Herbalife, which sells supplements and weight-loss products, said in a regulatory filing that the possible settlement with the Federal Trade Commission “would likely include a monetary payment and injunctive and other relief.”
The situation is fluid, however, and a number of issues could prevent a final agreement from being reached, Herbalife said in the filing late Thursday.
If talks with investigators break down, a legal fight is likely, the company said.
Regulators close small Pennsylvania bank
Regulators are closing a small bank in Pennsylvania, the third failure of a federally insured bank this year.
The Federal Deposit Insurance Corp. said that First CornerStone Bank, based in King of Prussia, Pa., was closed Friday.
As of March 31, First CornerStone had total assets of $103.3 million and total deposits of $101 million. It operated six branches.
First-Citizens Bank & Trust Co. of Raleigh, N.C., will assume all of its deposits and purchase essentially all of its assets.
The failure is expected to cost the FDIC $10.8 million.
