Herbalife to pay $15 million to settle class action lawsuit

  |   01 November, 2014   |   371   |   3980

(Reuters) - Herbalife Ltd (HLF.N) would pay $15 million to settle an 18-month battle over a class action lawsuit brought by a former distributor claiming that the nutrition and supplements company is running an alleged pyramid scheme, according to a U.S. court filing.



The company would pay $15 million in cash, plus up to $2.5 million for product returns, according to the court filing that granted preliminary approval for the settlement on Friday.



Under terms of the settlement, Herbalife would also make "numerous changes" to its business model for at least three years after the settlement receives final approval, the court filing said.