In a Belgian appeals court ruling yesterday, Herbalife was cleared of allegations that the company operates an unlawful pyramid scheme.
This judgment overturns a previous ruling by the lower court, in response to claims brought by Belgian consumer organization Test-Aankoop, that Herbalife was operating a pyramid scheme.
The court ruling, says that Herbalife’s sales model is in “full compliance with the law.”
The news is of course great news for investors as shares went up $4.80, or 6.7%, to $76.65. So far this year Herbalife stock is up more than 130%.