WINSTON-SALEM, N.C. -- After a U.S. senator called for an investigation of Herbalife, the city of Winston-Salem says they've heard these types of allegations before.
Ed McNeal, public information officer for the city of Winston-Salem tells WFMY News 2 Thursday night the city does not have a formal comment at this time, but are aware of the allegations surrounding the company.
He also sent this statement via email Thursday night:
"This economic development deal is like the other large development projects. If the business doesn't meet the agreed upon goals for hiring and investment they don't get our incentives, and we have a five year claw back if they shut down. That means they have to pay the incentives back."
Thursday morning, Senator Edward J. Markey asked for an investigation to be launched into Herbalife, stating that he had "serious questions" about the way the company pays its independent sales staff.
According to a report on CNN, Herbalife shares were down 12% Thursday morning after reports of Markey's statements.
At end of 2012, Herbalife opened a hub in Winston-Salem at the old Dell plant. The company created over 500 jobs.
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WFMY News 2