Herbalife is surging after a report that the company has reached a settlement with the FTC

Herbalife shares jumped by as much as 8% in trading Tuesday following reports that the company has reached a settlement agreement with the Federal Trade Commission.

The New York Post reported, citing someone familiar with the matter, that Herbalife reached an agreement in principle to settle an investigation into whether it is an alleged pyramid scheme.

An announcement of a deal could come later Tuesday, although nothing is final yet, the Post reported. It said Herbalife has agreed to a hefty fine.

The FTC opened a probe into the company after hedge fund manager Bill Ackman alleged that its business operated like a pyramid scheme.

Here's a chart showing the spike in trading:

Google