How to keep up on product recalls

(AP / September 14, 2011)

By Scott J. Wilson, Los Angeles Times

January 13, 2013

Each year manufacturers announce more than 1,000 recalls of dangerous products, including toys, cars, medicine and food. But because there's no definitive way to inform consumers, many people remain unaware of these recalls and may continue to use an unsafe product. Here are some steps to take to keep yourself informed:

After buying a product, mail in the product registration card or, if it's an option, register online or by phone. Note that although some manufacturers take advantage of the registration process by asking for such things as your income, age or buying habits, you only have to give your contact information and the brand and model number of the product.

Sign up for email alerts with the Consumer Product Safety Commission at http://www.cpsc.gov/cpsclist.aspx. You can choose to receive all alerts or use the category options to be notified only for recalls of children's, household, outdoor or sports products.

For recalls related to cars, motorcycles, tires and vehicle child restraints, sign up for email notification from the National Highway Traffic Safety Administration at www-odi.nhtsa.dot.gov/subscriptions. You can select what products you want to monitor, including specific car models.

For food safety recalls, sign up for email alerts at http://www.foodsafety.gov/recalls/alerts, a website offered by the Department of Health and Human Services. The site also offers an app for smartphones and will feed recall notices to your Internet news reader.

For recalls of medical drugs and devices, go to the U.S. Food and Drug Administration website at http://www.fda.gov and select FDA Recall Email Alert. At the next page, you have several choices to be alerted to different kinds of recalls.

scott.wilson@latimes.com

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S.F. mourns a twin with a passion for fashion

SAN FRANCISCO — They were known simply as the San Francisco Twins.

At 5-foot-1 and about 100 pounds apiece, the fashion enthusiasts were an integral part of the city fabric for four decades. With matching furs, hats and high-end purses, they completed each other's sentences, posed for countless tourist snapshots and modeled for the likes of Reebok, Joe Boxer and IBM.

Now one is gone.

Vivian Brown, 85, who had Alzheimer's, died in her sleep Wednesday, leaving behind Marian, who was eight minutes younger. The illness, and news of the twins' financial distress, brought an outpouring of support from city residents in recent months.

Donations managed by Jewish Family and Children Services helped Vivian move into an elegant assisted living facility in Lower Pacific Heights and provided for a car service so Marian could visit "as much as she wanted to," Development Director Barbara Farber said. "The community really responded.…It's been a beautiful thing."

At a benefit concert for the twins in August, the Go-Go's Jane Wiedlin and other musicians honored Marian. Cash flowed in to cover her meals at Uncle Vito's Pizza on Nob Hill, long one of the ladies' regular haunts.

On Friday, fans offered collective condolences as they swallowed some bitter medicine: The sightings that brought joy to many — of the twins in leopard-print cowboy hats parading up and down Powell Street and window shopping at Union Square — are forever a thing of the past.

In saying goodbye to Vivian, the city has ushered out an era of style.

"All of that has gone, and that's true of all cities," said Ann Moller Caen, the widow of Pulitzer Prize-winning San Francisco columnist Herb Caen, who wrote often about the twins. "They've lost the elegant few."

Mayor Ed Lee echoed residents' grief in online postings throughout the day, saying that "San Francisco is heartbroken" over Vivian's passing and was "fortunate to have called her a true friend."

The twins, who were born in Kalamazoo, Mich., and held degrees in business administration, moved to San Francisco in 1973, prompted by Vivian's chronic bronchial condition. Once on the West Coast, Vivian became a legal secretary and Marian worked at a bank.

But fashion was their passion, and they cut a striking double image.

There were the fitted white suit jackets with pleated skirts, veiled hats and white fur coats; the red wool Ellen Tracy suits with black felt hats and black gloves.

"When you first came to the city and saw them, you might think it was a little joke. But it really wasn't," Caen said Friday. "They were very warm and very pleasant to everyone, and they just loved Herb. And he loved them."

Evelyn Adler recalled that her father, who sold shoes at the Emporium on San Francisco's Market Street in the 1970s, had regularly waited on "the girls," as he called them.

"They were always at the very height of sometimes ridiculous fashion," said Adler, 82. Her father, she said, had talked of how years of wearing pointy shoes left the twins with overlapping toes. (They later embraced lower heels that were "much more suited to their feet," Adler said.)

As a volunteer for Jewish Family Services, Adler recently shopped for a new wardrobe for Vivian — and was taken aback by the sight of the twins in separate outfits. About a quarter-century ago, the twins admitted to an interviewer that after a six-month attempt to dress differently in their 20s, they had abandoned the project forever. Even their lingerie matched.

They had their regular haunts, which Marian now frequents solo.

David Dubiner, owner of Uncle Vito's Pizza, said the sisters began coming in nearly two decades ago. They always sat at the table by the window, chatting with tourists for so long that their food had to be reheated.

Vivian often did more talking, Dubiner said, but Marian now holds court for two.

On Thursday evening, Marian arrived alone at the Sir Francis Drake Hotel on Union Square to "have a glass of champagne and toast her sister goodbye," said Tom Sweeney, chief doorman at the hotel who for the last 37 years watched the twins descend the four blocks from their Nob Hill apartment.

"They're quite the personalities of San Francisco," Sweeney said. "We'll definitely miss Vivian."

lee.romney@latimes.com

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Obama won't support building 'Death Star'

WASHINGTON (AP) — A "Death Star" won't be a part of the U.S. military's arsenal any time soon.

More than 34,000 people have signed an online petition calling on the Obama administration to build the "Star Wars" inspired super-weapon to spur job growth and bolster national defense.

But in a posting Friday on the White House website, Paul Shawcross, an administration adviser on science and space, says a Death Star would cost too much to build — an estimated $850 quadrillion — at a time the White House is working to reduce the federal budget.

Besides, Shawcross says, the Obama administration "does not support blowing up planets."

The U.S., Shawcross points out, is already involved in several out-of-this-world projects, including the International Space Station, which is currently orbiting Earth with a half-dozen astronauts.

___

Online:

White House response to petition: http://tinyurl.com/asd565g

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Former Lab Technician Denies Faulty DNA Work in Rape Cases

A former New York City laboratory technician whose work on rape cases is now being scrutinized for serious mistakes said on Friday that she had been unaware there were problems in her work and, disputing an earlier report, denied she had resigned under pressure.

The former lab technician, Serrita Mitchell, said any problems must have been someone else’s.

“My work?” Ms. Mitchell said. “No, no, no, not my work.”

Earlier, the city medical examiner’s office, where Ms. Mitchell said she was employed from 2000 to 2011, said it was reviewing 843 rape cases handled by a lab technician who might have missed critical evidence.

So far, it has finished looking over about half the cases, and found 26 in which the technician had missed biological evidence and 19 in which evidence was commingled with evidence from other cases. In seven cases where evidence was missed, the medical examiner’s office was able to extract a DNA profile, raising the possibility that detectives could have caught some suspects sooner.

The office declined to identify the technician. Documents said she quit in November 2011 after the office moved to fire her, once supervisors had begun to discover deficiencies in her work. A city official who declined to be identified said Ms. Mitchell was the technician.

However, Ms. Mitchell, reached at her home in the Bronx on Friday, said she had never been told there were problems. “It couldn’t be me because your work gets checked,” she said. “You have supervisors.”

She also said that she had resigned because of a rotator cuff injury that impeded her movement. “I loved the job so much that I stayed a little longer,” she said, explaining that she had not expected to stay with the medical examiner’s office so long. “Then it was time to leave.”

Also on Friday, the Legal Aid Society, which provides criminal defense lawyers for most of the city’s poor defendants, said it was demanding that the city turn over information about the cases under review.

If needed, Legal Aid will sue the city to gain access to identifying information about the cases, its chief lawyer, Steven Banks, said, noting that New York was one of only 14 states that did not require routine disclosure of criminal evidence before trial.

Disclosure of the faulty examination of the evidence is prompting questions about outside review of the medical examiner’s office. The City Council on Friday announced plans for an emergency oversight committee, and its members spoke with outrage about the likelihood that missed semen stains and “false negatives” might have enabled rapists to go unpunished.

“The mishandling of rape cases is making double victims of women who have already suffered an indescribably horrific event,” said Christine C. Quinn, the Council speaker.

A few more details emerged Friday about a 2001 case involving the rape of a minor in Brooklyn, in which the technician missed biological evidence, the review found. The victim accused an 18-year-old acquaintance of forcing himself on her, and he was questioned by the police but not charged, according to a law enforcement official.

Unrelated to the rape, he pleaded guilty in 2005 to third-degree robbery and served two years in prison. The DNA sample he gave in the robbery case was matched with the one belatedly developed from evidence the technician had overlooked in the 2001 rape, law enforcement officials said. He was recently indicted in the 2001 rape.

Especially alarming to defense lawyers was the possibility that DNA samples were cross-contaminated and led to false convictions, or could do so in the future.

“Up to this point,” Mr. Banks said, “they have not made information available to us, as the primary defender in New York City, to determine whether there’s an injustice that’s been done in past cases, pending cases, or allowing us to be on the lookout in future cases.” He added, “If it could happen with one analyst, how does anyone know that it stops there?”

The medical examiner’s office has said that the risk of cross-contamination was extremely low and that it does not appear that anyone was wrongly convicted in the cases that have been reviewed so far. And officials in at least two of the city’s district attorneys’ offices — for Brooklyn and Manhattan — said they had not found any erroneous convictions.

But Mr. Banks said the authorities needed to do more, and that their statements thus far were the equivalent of “trust us.”

“Given what’s happened,” he said, “that’s cold comfort.”

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Simple, solid strategies for investing money

Investing has been a massive exercise in frustration for millions of Americans over the last decade or so.

Two market crashes in 12 years drove many people away from equities. Now key U.S. stock market indexes are at or near record highs again, after a strong 2012 rally that has spilled into 2013.

The average domestic stock mutual fund rose 15% last year, the third annual gain in four years. Meanwhile, the hunger for perceived safety has driven interest rates on bonds and other fixed-income securities to record lows. It's a backdrop that seems to cry out for a complex, headache-inducing game plan.

But in fact, the best strategy for many people may be just the opposite: Focus on the basics. Mainly, keep sight of the things you can control to reduce your mental stress and improve your odds of long-term success.

Here are four strategies for keeping it simple:

Keep it balanced. You say you can't decide how to build and maintain a diversified portfolio? Then don't bother. Let someone else do it for you. That's the beauty of "balanced" mutual funds — portfolios that always own a mix of stocks and bonds.

A balanced or "allocation" fund is the simple, elegant solution for people who know they want to be in financial markets for the long haul but don't have the time or interest to devote to closely managing their nest eggs.

The basic idea is that the stock portion of a balanced fund provides long-term growth while the less-volatile bond portion provides regular interest income and a buffer against any plunge in stock prices. A typical mix is 60% big-name stocks, 40% bonds, but the mix varies depending on whether a fund follows a conservative, moderate or aggressive strategy.

Here's how it works in practice: In the 10 years ended Dec. 31, the average moderate-mix balanced fund gained 6.4% a year, according to investment research firm Morningstar Inc. That was only modestly less than the 7.1% average annual gain in the Standard & Poor's 500 stock index in that period.

But the balanced fund's return came with a lot less volatility, including much smaller losses than in the overall stock market in down years.

You could create a balanced portfolio of individual stock funds and bond funds on your own. But if your goal is to maintain a specific percentage of your portfolio in each type of asset, you'd need the discipline to "rebalance" each year by selling some portion of the funds that have done best and channeling that money into the funds that have performed worst.

"Buy low, sell high" always sounds easy, but psychologically it's very difficult. "What you're asking investors to do is really against their human intuition," said Fran Kinniry, a principal at Vanguard Group's investment strategy unit in Valley Forge, Pa.

A balanced fund makes that decision for you. And it keeps you in the stock market in periods when your instinct might be to flee — such as after the 2008 crash.

There are two types of balanced funds in most 401(k) retirement savings programs. One is the conventional balanced fund, including such hugely popular offerings as the Vanguard Wellington fund and American Balanced fund. These funds generally keep the stock-versus-bond ratios in a specific range, depending on where the manager believes there is better value.

The other type is the target-date retirement fund. You pick a target-date fund based on your expected retirement year, and the portfolio is automatically adjusted over time to gradually lower its stock assets and raise its bond assets. The goal is to lower the portfolio's risk and volatility as you age.

Lately, some investors may be worried less about the stock portion of their balanced fund than the bond portion. With bond yields at or near historic lows, a jump in market interest rates could devalue bonds.

That may happen eventually. But calling the turn is no easy feat.

"Just because the level of interest rates is low doesn't tell you about the direction of rates," Kinniry said. "Japan has had low rates for 25 years."

And if stocks pull back soon, high-quality bonds would be a logical refuge.

Get on the right side of the tax man, and stay there. This is the true no-brainer. Shelter as much wealth as you can from current taxes, allowing your nest egg to compound over time.

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Restored funding for prescription drug-monitoring program urged

California Atty. Gen. Kamala D. Harris on Thursday called on Gov. Jerry Brown to restore funding to a prescription drug-monitoring program that health experts say is key to combating drug abuse and overdose deaths in the state.

Harris' appeal to restore funding to CURES, as it is known, follows an article in The Times last month that reported that the system, once heralded as an invaluable tool, had been severely undermined by budget cuts and was not being used to its full potential.

The CURES database contains detailed information on prescription narcotics, including the names of patients, the doctors prescribing the drugs and the pharmacies that dispense them. The system was designed to help physicians detect "doctor-shopping" patients who dupe multiple physicians into prescribing drugs such as OxyContin, Vicodin and Xanax.

Harris' request followed Brown's unveiling of a proposed $97.7-billion budget, which projects a surplus — a feat that has been accomplished only one time in the last decade. With California's fiscal condition improving, Harris said it was up to the state to make sure the money was "spent wisely."

"This includes smart investments that benefit Californians, such as restoring funding for the state's prescription drug-monitoring program," she said in a statement.

Brown's office had no comment.

The governor's budget does increase Harris' Department of Justice general fund allocation by 4.5% to $174.3 million, but it does not earmark money for CURES. Harris could seek legislative authority to spend some of her budget on the program.

"We are going to have a discussion on the funding and where the money will come from," said Lynda Gledhill, a spokeswoman for Harris.

CURES is the nation's oldest and largest prescription drug-monitoring program and once served as a model for other states. Today, it has fallen behind similar programs elsewhere. CURES data could be used to monitor physicians whose prescribing puts patients at risk. But it is not.

The U.S. Centers for Disease Control recommends that states use such data to keep tabs on doctors, and at least half a dozen states do so.

As part of spending cuts aimed at maintaining the state's solvency amid a deep recession, Brown gutted the Bureau of Narcotics Enforcement, which ran CURES, in 2011, shortly after Harris succeeded him as attorney general. Harris kept the program alive with about $400,000 in revenue from the Medical Board of California and other licensing boards. But it is down to one employee and has no enforcement capacity.

State officials have estimated it would cost about $2.8 million to make CURES more accessible and easier to use, and $1.6 million more per year to keep it running. However, officials say the program — with little or no additional financial resources — could now be used to identify potentially rogue doctors.

Bob Pack, an Internet entrepreneur, has advocated using CURES more vigorously to track reckless physicians and pharmacies as well as doctor-shopping patients. He became active on the issue after a driver high on painkillers and alcohol struck and killed his two young children in the Bay Area suburb of Danville in 2003.

Pack, who helped design an online portal to give physicians and pharmacists immediate access to CURES, said he was happy to see Harris ask Brown to restore funds for the program.

"But that's only a request," he said. "No one knows if that's really going to happen. Meanwhile, doctors are continuing to over-prescribe and thousands of Californians are dying from prescription drug overdoses. I hope this … has some bite to it."

An aide to Harris said restoring the CURES program is a high priority.

"She's committed to fixing the database and making it as strong as possible," said Travis LeBlanc, special assistant attorney general. "When we have limited resources and in a budget crunch, we need to focus our resources and use it in smart, efficient ways, and [CURES] is one of those," he said.

lisa.girion@latimes.com

scott.glover@latimes.com

Times staff writer Hailey Branson-Potts contributed to this report.

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Holiday sales of PCs slide for first time in five years: IDC

SEATTLE (Reuters) – Holiday season sales of personal computers fell for the first time in more than five years, according to tech industry tracker IDC, as Microsoft Corp’s new Windows 8 operating system failed to excite buyers and many opted for tablet devices and powerful smartphones instead of PCs.

PC makers such as Hewlett-Packard Co, Lenovo Group and Dell Inc sold 89.8 million PCs worldwide in the fourth quarter of last year, down 6.4 percent from the same quarter of 2011. That was slightly worse than expected by most.

For all of 2012, 352 million PCs were sold, down 3.2 percent from 2011. That was the first annual decline since 2001, according to IDC. (Reporting By Bill Rigby; Editing by Gary Hill)

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South African musical creates a 1950s fantasy

HARTBEESPOORT, South Africa (AP) — Do you remember your first kiss? If you have a few years under your belt, maybe you stole it in the back of the movie theater, the projector whirring in the darkness. Or rather, back of the "bioscope," a word for the cinema in South Africa in the old days.

The fantasy world of "Pretville," a Grease-style film musical in the Afrikaans language, celebrates 1950s Americana, the thrill of first love and foot-tapping classics that evoke innocence and discovery.

It is also an affirmation of an Afrikaner identity that spent years in the doghouse after 1994 elections and the end of apartheid, the system of white minority rule imposed by Afrikaner nationalists in 1948. And while most of the actors are white, two who are not play authority figures, lampooning the now-discarded racial order.

The musical, its creators stress, is joyful escapism, not a whitewashing of South Africa's tortured history of race relations. As co-producer Paul Kruger noted, "pret" means "fun" in Afrikaans. The movie indulges in rock 'n' roll, vintage cars, greasers in sneakers, pin curl hairstyles and swing dresses, lots of pastel pink and blue, and double thick strawberry milkshakes with extra cream.

"I think we've been excluded in that whole journey during the '50s in South Africa," Kruger said. He added with understatement: "We were busy with too many other things, too many other politics kept us busy."

The plot is about a farm boy and a town slicker who vie for a beauty's affection, with assorted side-sagas and a generous sprinkling of flamboyant characters: an aging crooner called Eddie Elektriek who courts an old flame, a candy storeowner with an eye for the guys, a hairdresser-cum-mayor with a goatee and a pompadour, a stutterer in horn-rimmed glasses and a pregnancy that fuels fevered gossip.

The feel-good film borrows from Buddy Holly, Jerry Lee Lewis and West Side Story. But it's a whole lotta shakin' with an Afrikaner stamp. For example, the song "Is Jy Myne" (Are You Mine) is loosely based on "My Boy Lollipop," and "Skud, Skop en Hop" (Shake, Rattle and Roll) echoes "Great Balls of Fire."

"It's taking something old, putting something new," composer Machiel Roets said of pairing Afrikaans with vintage vibes. "Voila! A new recipe."

Afrikaans, the Dutch-based language of the descendants of European settlers, is spoken as a first language by 13.5 percent of South Africa's 51 million people, according to the 2011 census. Pretville has a strong fan base and English subtitles but it isn't a cross-over hit. The movie's promoters say it's part of a larger revival in the last few years of music and movies in Afrikaans, a language once tarred by its association with apartheid.

The film set, which resembles small-town Main Street, is a popular tourist attraction for Afrikaans-speaking crowds that ogle the Hammerstein radio, Nash Metropolitan car, Handy Hannah hair dryer and other props, many bought on eBay and shipped from the United States.

Annelie Engelbrecht, who was celebrating her 49th birthday there, and her husband, Pierre, traveled 700 kilometers (435 miles) from their home near South Africa's Kruger game reserve to soak up the movie's aura. The set lies near a mountain range west of the capital, Pretoria. A sign at the entrance announces the production house: "Hartiwood Studios," a play on the nearby town of Hartbeespoort, and Hollywood.

"We used to go to the films and kiss at the back of the movies. It was really like that in the olden days," Engelbrecht said. She thought the racial mixing in the movie was "tongue in cheek" because it was unthinkable under apartheid in the 1950s.

"Blacks and whites wouldn't have danced together, I can promise you that," Engelbrecht said. "That is just the new South Africa."

Actor Terence Bridgett, the campy mayor who sashays around a hair salon, is of mixed heritage. His two assistants, Dyna and Dot, are "The Supremes" of Pretville. Entertainer Emo Adams, who has a Malay background and released an album titled "Tall, Dark & Afrikaans," plays the police chief, breaking up a fight between the love-struck suitors and tossing them in jail.

In a classic send-up, Adams delivers "Elvis the Pelvis" dance moves in the olive-green uniform of the 1950s South African police. Security forces at that time harshly enforced a growing body of law that enshrined a system of white domination and racial segregation. Blacks lacked political rights, the right to move freely, the right to live where they wanted. They couldn't, of course, visit "bioscopes" for whites.

In 1976, the South African government tried to force the teaching of Afrikaans on schools in black townships, triggering massive protests and a bloody crackdown that ultimately invigorated opposition to white rule.

After apartheid, Afrikaans became one of 11 official languages in the multi-ethnic country. R.W. Johnson, author of "South Africa's Brave New World," wrote that many Afrikaners felt so guilty about the past that they were reluctant to assert their culture, "in much the same way that after 1945 many Germans became uncomfortable with any assertion of German national identity."

Lizelle de Klerk, a Pretville actor, remembers shunning her cultural background and helping craft plays in university about "how we hate being Afrikaans," but now she believes Afrikaners can proudly tell their own stories, whether they are about race or not.

De Klerk dreams of performing on London's West End, but also wants to contribute to South African expression in the years ahead. She is reading a book about the 1990s Truth and Reconciliation Commission, which opened a nation's story-telling floodgates by hearing testimony about apartheid-era cruelty.

"South Africa finally had a new narrative that they could draw from to make stories, because finally you had black peoples' stories, colored peoples' stories. You heard offenders' stories. You heard 'people that were victims' stories," de Klerk said. "So it's a whole new dynamic. But I think we're moving, slowly moving, forward. And it's great."

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Parental Consent Rule May Proceed for a Circumcision Ritual, a Judge Says

New York City health officials may proceed temporarily with a plan to require parental consent before an infant may undergo a particular Jewish circumcision ritual, a federal judge ruled Thursday.

City officials say 12 cases of herpes simplex virus have likely resulted from the procedure, known as metzitzah b’peh, since 2000, including one Brooklyn case reported this week. Two infants died, and two suffered permanent brain damage. Most Jews no longer practice metzitzah b’peh, in which the circumciser uses his mouth to suck blood from the wound, but it remains common among some ultra-Orthodox communities.

Citing the risk of infection, health officials in September introduced a regulation that would require parents to provide written consent stating that they were aware of the health risks.

But the Central Rabbinical Congress of the United States and Canada, Agudath Israel of America, and the International Bris Association sued in October to stop the rule from taking effect, calling it an infringement of their constitutional rights. They also denied the procedure posed a risk and asked a federal court to put the rule on hold while the litigation proceeded.

In denying the request for a preliminary injunction, Judge Naomi Reice Buchwald of the United States District Court for the Southern District wrote that the risks were clear.

“In light of the quality of the evidence presented in support of the regulation, we conclude that a continued injunction against enforcement of the regulation would not serve the public interest,” she wrote.

City lawyers said they were gratified by the ruling, but Andrew Moesel, a spokesman for the plaintiffs, said the groups would appeal. “We continue to believe that this case is a wrongful and unnecessary intrusion into the rights of freedom of religion and speech,” he said.

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Herbalife fires back at hedge fund giant

Herbalife Chief Executive Michael Johnson was tired of a powerful hedge fund manager bad-mouthing his company.

So he put on a show Thursday before hundreds of investors at the Four Seasons hotel in Manhattan, rebutting claims that the Los Angeles nutritional supplement company is a pyramid scheme. The presentation accused hedge fund giant Bill Ackman of lies and snobbery, compared Herbalife to the Girl Scouts and featured the company's president entreating that "the world needs more hugs."

Who says Wall Street is more boring these days?

The company's two-hour defense of itself is the latest in a battle since Ackman's Pershing Square Capital Management labeled Herbalife as "the best-managed pyramid scheme in the history of the world," during a similar presentation he made late last month. The outspoken fund manager has made a $1-billion bet that the stock would plunge in value.

"Just the very nature of the 'battle' has never been seen in the history of the Earth," said Tim Ramey, an analyst with D.A. Davidson and Co. "This was a very, very orchestrated attack."

Herbalife has hired a battalion of researchers to prove that it has a legitimate and stable business model. Executives held back no punches Thursday before a crowd of investors and analysts, labeling Ackman an elitist who made "false statements," "distortions" and "misrepresentations" about Herbalife and vowing to use "every means available to protect our reputation."

"In recent weeks, there's been a tremendous amount of misinformation about Herbalife," Johnson said. "This misinformation has found its way into the marketplace. Therefore we are sitting with you to correct some of this today."

In addition to outside experts brought in to bolster Herbalife's claims, company executives went through Pershing's presentation last month, disputing individual slides.

To the complaint that Herbalife is not focused on its products, Chief Operating Officer Rich Goudis showed figures indicating that the company spends millions on research and development.

To a Pershing slide that accused Herbalife of having a small distribution network, the company countered with a map of more than 300 company-run distribution points and showing its expansion in Indonesia and South Korea.

To a Pershing slide showing Herbalife products as more expensive than competitors' per 200-calorie servings, the company offered its own slide that compared the prices of the products per unit and showed costs in line with those of its competitors.

"Pershing intentionally used a misleading metric," Goudis said. "They did this to knowingly create a false impression."

They paraded out experts.

Kim Rory, representing Lieberman Research Worldwide, said distributors she surveyed had joined Herbalife because they wanted to get a discount on the products for personal use. Few signed up because they thought they'd make a large amount of money, and about two-thirds would recommend being a distributor to friends, she said.

Anne Coughlan, a professor at the Kellogg School of Management, defended Herbalife's marketing structure and disputed the allegation that it is a pyramid scheme.

"I didn't even see a scintilla of evidence that would suggest to me any hint that this company is running anything but a legitimate multi-level marketing program," she said.

Perhaps the most personal attacks came from Herbalife President Des Walsh, who said he was "highly offended" by Ackman's portrayal of Herbalife's nutrition clubs and defended the company for bringing nutritional products to poor neighborhoods.

After showing a video featuring happy distributors in crowded nutrition clubs, Walsh suggested that Ackman was out of touch with real America.

"This doesn't look like a country club in Westchester, Connecticut, but let me tell you, inside this club is real America," he said. (Earlier in the presentation, Walsh explained that people come to the club for a hug, adding, "the world needs more hugs.")

His comments echo a note sent out last week by D.A. Davidson analyst Ramey, who has a "buy" rating on Herbalife.

"Perhaps where Mr. Ackman lives he never sees a car with the 'Lose weight, ask me how' message across the rear window," he wrote. "I can tell Mr. Ackman that in my hometown, which is not quite Chappaqua, Herbalife is an iconic and widely recognized brand."

Ackman responded quickly Thursday, saying that Herbalife's presentation "distorted, mischaracterized and outright ignored large portions of our presentation," and that he had been contacted by people who provided more information into Herbalife's business practices, which he will soon reveal.

The unusual fight on Wall Street ramped up in December, when Ackman laid out his case against Herbalife in a three-hour, 200-plus slide presentation. He questioned whether the company was focused on recruiting new distributors, who pay to join the company, instead of on selling products. His announcement sent the company's stock down 36% and turned heads when analysts heard he'd sold short 20 million Herbalife shares.

Ackman's biggest beef with Herbalife focused on its so-called multi-level marketing model, which he said led to only those at the top of the company making money. More than 90% of distributors break even or lose money, he said. Ackman even drew UCLA into the controversy, saying Herbalife mentioned a lab at the university multiple times during each investor presentation to lend itself legitimacy.

Herbalife shares recovered some of their losses in the weeks after Ackman's presentation as some investors expressed confidence in the company. Hedge fund Third Point said it was taking an 8.2% stake in Herbalife, betting that the company would survive Ackman's assault.

Analysts at Thursday's meeting seemed supportive of Herbalife, with some expressing their belief in the company during a question-and-answer period after the presentation. One analyst urged the company to fight back against Pershing Square's method of "slandering" the company.

"It was a good, thorough presentation that certainly accomplished the job of defending the legitimacy of their business model," Ramey said.

Still, not all investors were convinced by the presentation. Herbalife's stock closed down 71 cents, or 1.8%, at $39.24. That may be because on Wednesday the Securities and Exchange Commission opened an investigation into Herbalife, according to published reports.

alana.semuels@latimes.com

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