Food & Beverage

Herbalife says database error botches member growth numbers

Herbalife says error overstated member growth
Herbalife says error overstated member growth

Herbalife said on Thursday it had overstated growth in the number of "active new members" in some instances in the past three quarters due to database errors.

Herbalife's shares skidded 15.5 percent in premarket trading after the company said it was correcting a few statements starting from its second-quarter earnings conference call to fix the errors.

In its latest conference call, for example, the company had said "worldwide, active new members, excluding China, rose 16.7 percent year-over year," but the actual rise was 3.2 percent.

Herbalife, however, said the errors did not impact the company's historical consolidated financial statements and no information regarding this non-financial metric had been included in any of its periodic regulatory filings.