Kamala Harris disregarded staff recommendation to investigate Herbalife — while husband Doug Emhoff's firm repped the company

Core Points - Kamala Harris, while serving as Attorney General of California, ignored staff recommendations to investigate Herbalife for potential pyramid-scheme behavior, despite her husband working for a law firm representing the company [1][4] - A memo from Harris's staff highlighted the need for a formal investigation into Herbalife's practices, suggesting that the company was using tactics to maximize distributor numbers, which could lead to misleading representations about profits [2][1] - Bill Ackman, a prominent investor who has shorted Herbalife, criticized Harris's inaction, implying it was influenced by her husband's ties to the company [4][6] Investigation Recommendations - Harris's staff proposed interviewing former distributors, subpoenaing company documents, and deploying undercover investigators to assess Herbalife's operations [2] - The memo emphasized that conducting an investigation would demonstrate the office's commitment to monitoring and enforcing existing judgments against Herbalife [2] Investor Reactions - Bill Ackman celebrated a significant drop in Herbalife's stock price, which fell by 30% to a 14-year low following mixed fourth-quarter results [6] - Ackman has long alleged that Herbalife operates as a pyramid scheme, particularly exploiting low-income and minority communities [6][4] - Activists have previously called on Harris to protect vulnerable populations from Herbalife's alleged predatory practices [6]