Herbalife reaches preliminary settlement with FTC: source

Herbalife has reached an agreement in principle with the Federal Trade Commission to settle a years-long probe into whether it was a pyramid scheme, The Post has learned.

An announcement of a deal could come as soon as Wednesday, sources said, although the agreement is not final and could still fall apart.

Terms of the settlement — including what could be a sizeable financial penalty — could not be learned.

“I do not believe the FTC is requiring a substantial change in the business model,” a source close to the matter said.

Herbalife has, though, agreed to pay a hefty fine, the source said.

The Los Angeles-based company has been operating under a cloud since Dec. 20, 2012, when hedge fund billionaire Bill Ackman announced a $1 billion bet that Herbalife was a fraud and that its shares would go to zero after regulators found it was a pyramid scheme.

The company has strongly denied the accusations.

The FTC subsequently opened a probe into the matter as did some state attorneys general.

Earlier this month, Herbalife said it was close to a settlement with the FTC.

An agreement in principle with the FTC would indicate that regulators are not asking for too drastic a remedy from the nutritional shake maker.

The FTC is meeting in Washington on Wednesday regarding a law enforcement matter, according to its website. The exact topic of the matter isn’t disclosed, but sources believe it relates to the Herbalife probe.

Of course, any matter on the agenda could be adjourned.

The FTC meeting was originally scheduled for Tuesday but was pushed to Wednesday.

Herbalife and the FTC did not return calls for comment.

Shares of Herbalife were up 1.2 percent, or 73 cents, at $60.15 in early afternoon trading.