Posted by ryanfoges
Source – Herbalife is spreading around the cash to beat back Bill Ackman’s claim it is a pyramid scheme.
The controversial protein shake seller this year for the first time spent more than $1 million lobbying in Washington, DC.
The multilevel marketing (MLM) company has long been known for its strong presence in the nation’s capital — but the $1.34 million it spent in 2013, as of Oct. 28, dwarfs its typical spending, records show.
The previous record was in the election year of 2008, when it spent $880,000, according to the Center for Responsive Politics. It spent $810,000 in 2012.
Herbalife’s largesse exceeds that of other companies in its industry, including the biggest MLM, Amway, which spent $330,000 last year.
It even surpasses pharmaceuticals, whose need for regulatory drug approval keeps them forking over the cash.
For example, Herbalife outspent McKesson Corp., whose $37 billion market cap is more than quadruple Herbalife’s $7.9 billion. McKesson spent only $1.13 million, records show.
Herbalife also outspent its foe, Ackman’s Pershing Square, almost tenfold. Pershing Square, which has a $1 billion short bet on Herbalife, spent $138,000 lobbying this year.
Herbalife denies Ackman’s charges. It began increasing its lobbying efforts as three Democratic Hispanic lawmakers in Washington joined Ackman in calling for an investigation of the company by the Federal Trade Commission.
In a recent letter to investors, Ackman criticized Herbalife’s lobbying efforts, saying its “response to Pershing Square is unprecedented in the history of short selling,” including “in the halls of Congress.”
I guess it was only a matter of time before Herbalife stepped up to the big boys league. Any company who wants to make a big splash on the market builds a million dollar lobby. Caesar’s Palace. Trump Towers. Enterprise. All beautiful lobby’s. Now we can add Herbalife to that exclusive list. The difference between Herbalife and those other companies is that Herbalife actually helps people. For a small fortune they put you on a weight loss program that will have you feeling blessed and grateful in no time. Add in their new lobby, and you have a recipe for success.