Company sued over poison pill

Tuesday, Oct. 17, 2000 | 11:26 a.m.

Herbalife International Inc. shareholders filed a lawsuit in Las Vegas to stop the California company and its board of directors from frustrating the shareholders' efforts to get the highest possible price for their stock.

The suit was filed in Las Vegas because Herbalife is incorporated in Nevada.

In a Clark County District Court suit, Colleen Tharp, Frances McFarland, Patricia Lisa and Harbor Finance Partners sued Los Angeles-based Herbalife, alleging the company adopted a "poison pill" or shareholder rights plan that has "the effect of precluding successful completion of even the most attractive offer for Herbalife unless the board acquiesces or approves."

The defendants could not be reached for comment on the allegations.

archive