Herbalife is prepping for war in Washington.
The controversial multi-level marketing company led by CEO Michael Johnson has added the Podesta Group, a high-powered DC lobbying firm founded by Tony and John Podesta, to its growing list of lobbyists.
The Podesta Group has longstanding ties to the Democratic establishment, indicating Herbalife is trying to shore up liberal support in addition to getting help from traditional Republican backers, like Sen. Orrin Hatch of Utah, to head off any regulatory action.
Hedge-fund activist Bill Ackman has been pressing for Washington to shut Herbalife down — accusing the Los Angeles distributor of nutritional supplements of being a pyramid scheme. Herbalife has denied the accusation.
Already, three Democratic Hispanic lawmakers on Capitol Hill have joined Ackman in calling for an investigation of the company by the Federal Trade Commission, as have five consumer groups. In addition, three Hispanic lawmakers from New York City have asked the FTC to investigate the pyramid charges.
Last month, Ackman told investors that he was making “material progress” with regulators, declining to be more specific.
Tapping the Podesta Group is a big step. John Podesta, though he no longer works there, was a chief of staff in President Bill Clinton’s administration and worked on President Obama’s first transition team, and his brother Tony worked on several unsuccessful Democratic presidential campaigns before becoming a lobbyist.
In July, Herbalife signed up the Raben Group, founded by Robert Raben, the former US Assistant Attorney General under Clinton. The Raben Group has worked for a number of Hispanic organizations.
Herbalife also has hired The Ogilvy Group and Downey McGrath Group as lobbyists. It has spent $560,000 on lobbying in 2013 so far, Politico reported.
Ackman’s Pershing Square hedge fund has hired Moffett Group and Wexler & Walker Public Policy Associates. It spent $54,000 lobbying through the second quarter.