Federal regulators closed an investigation of the multinational, nutritional supplements company Herbalife, which has for years been dogged by accusations that it was run as an elaborate pyramid scheme.
Though Herbalife was ordered to restructure its U.S. operations and pay a $200 million settlement Friday, it avoided being classified by the U.S. as a pyramid scheme.
Under the settlement announced Friday, Herbalife must rework the way in which it pays its salespeople. They must be compensated for selling Herbalife products, and the company must scrap incentives that reward them for recruiting other salespeople.
A business model that rewards participants for bringing...