Herbalife shares surge after FTC reject pyramid scheme claims
Shares up 16% in pre-market trade on Friday morning
Updated : 13:13
The Federal Trade Commission said on Friday that Herbalife is not a pyramid scheme, according to reports.
Shares in the health product company jumped by as much as 16% in premarket trading on Friday.
The FTC opened an investigation into the company after hedge fund manager Bill Ackman alleged that it was operating along the same lines as a pyrmaid scheme.
The company sells weight management products through various independent distributors who earn sales commissions.
In July 2014, Ackman published a 200-page slide deck detailing why Herbalife was "the big lie."