REPORT: The FTC has decided that Herbalife is not a pyramid scheme

The Federal Trade Commission has decided that Herbalife is not a pyramid scheme, according to CNBC, citing Dow Jones.

Herbalife shares jumped by as much as 16% in premarket trading on Friday.

The FTC opened a probe into the company after hedge fund manager Bill Ackman alleged that it operated like a pyramid scheme. The company sells weight-management products through a network of independent distributors who earn sales commissions.

More to come ...