Herbalife Ltd. (HLF) Longs BurnLounge Ruling As A Victory

The Ninth Circuit Court of Appeals upheld an earlier verdict in FTC v BurnLounge yesterday, ruling that the now defunct multi-level marketing (MLM) music company was a pyramid scheme, but Herbalife Ltd. (NYSE:HLF) longs are still happy with the ruling because it addressed the issue of internal consumption for the first time and didn’t dismiss the notion out of hand. “Today’s decision by the United States Court of Appeals for the Ninth Circuit in the FTC v. BurnLounge, Inc. validates product consumption by participants as a legitimate measure of demand for multi-level marketing companies and rejects Bill Ackman’s fundamental thesis…