Government investigations recently cleared Herbalife of allegations of criminal wrongdoing. Probes by the US Attorney's office and the FBI failed to find sufficient evidence that Herbalife has a fraudulent business model.

The investigations also cleared investor Bill Ackman's Pershing Square Holdings of manipulating Herbalife's stock price. Ackman has a $1 billion short position against Herbalife and has been vocal about his belief that the company will deteriorate with or without government intervention. In response, Herbalife has accused Ackman of attempting to "drive down Herbalife's stock in order to enrich himself and his investors."

There are still several civil investigations, including those by the FTC and SEC, focusing on the battle between the two companies.