Herbalife shares whipsaw amid conflicting FTC settlement reports

Patrick T. Fallon | Bloomberg | Getty Images

Herbalife Ltd. independent distributors look at available products before placing orders at the Los Angeles Distribution Center in Carson, California

Shares of Herbalife whipsawed Tuesday after The New York Post reported the firm and the Federal Trade Commission settled a years-long probe.

The stock rose as much as 8.5 percent at session highs, before holding about 4 percent higher.

The newspaper said the deal between the firm and the government agency could come as soon as Tuesday, although the agreement is not final and could still fall apart.

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That said, a source familiar with the company and the situation told CNBC the report should be taken with some skepticism. The source also said that, while there may be a deal in the future, not to expect one Tuesday.

The FTC declined to comment. Herbalife did not immediately respond to CNBC's request for comment.

—CNBC's Scott Wapner contributed to this report.