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Madigan urges Herbalife members to file claims in $3M settlement

Illinois Attorney General Lisa Madigan is urging state residents to file claims for a share of a new $3 million settlement with nutrition company Herbalife.

In a recent settlement, Herbalife agreed to pay $3 million to Illinois residents affected by its marketing scheme, according to a statement from Madigan’s office. The Illinois settlement is in addition to a nationwide $200 million settlement reached with the Federal Trade Commission.

The settlements were reached after allegations that Herbalife offered “promises of lavish rewards” for selling its nutrition and weight loss products, when the majority of incentives were actually given to people who recruited others into selling for Herbalife, prosecutors said.

Prosecutors claimed most people who joined Herbalife never made any money but lost the costs of starting a business.

The FTC settlement requires Herbalife to change its business model to ensure compensation based on verified retail sales, in addition to reimbursing affected members, the attorney general’s office said. It also prohibits Herbalife from making lavish promises in its marketing, including claims that members will “be set for life” or “earn millions of dollars.”

Illinois Herbalife members who have not yet filed a complaint with Madigan’s office can do so on the attorney general’s website or by calling the fraud hotline at (800) 386-5438.