Herbalife COO resigns after board review

Probert has been under investigation by the company's board for misstating his academic credentials in his biography. Probert's biography stated he had a master's in business administration, but he acknowledged last week that he never fully completed the requirements for his MBA at California State University, Los Angeles.

Probert's admission followed press inquires that stemmed from an investigation by Barry Minkow. Minkow runs the Fraud Discovery Institute in San Francisco and has been a vocal critic of Herbalife. He is currently shorting the shares, which means he is betting the stock price will drop.

Herbalife, which sells nutritional supplements and weight-loss products, said it "had no other choice" but to accept Probert's resignation "given the company's unwavering commitment to the highest standards in business ethics."

The company said existing personnel have taken over Probert's duties as COO. Des Walsh, senior vice president of worldwide sales, has been promoted to executive vice president.