herbalife founder deathBlog

herbalife founder death

Since Hughes death at age 44, lawsuits between the executives within his closest circle expose a tale of revenge, an executive with a shoplifting arrest and sexual harassment allegations. On June 16, the coroner found that Mr. Hughes had died May 21 of an overdose of alcohol and a toxic level of doxepin, an antidepressant. While the board approved the buyout offer, shareholders of the company filed a suit against the firm because they believed the share price they were offered was unfair. "Herbalife Nutrition Recognized as One of Forbes Magazine's Best Employers", "Mark R. Hughes, 44; Founded Nutrition Supplement Concern", "Herbalife Nutrition Announces Leadership Change", "Herbalife settles pyramid scheme case with regulator, in blow to Pershing's Ackman", "Herbalife Will Restructure Its Multi-level Marketing Operations and Pay $200 Million For Consumer Redress to Settle FTC Charges", "It's no longer business as usual at Herbalife: An inside look at the $200 million FTC settlement", "After Big Bet, Hedge Fund Pulls the Levers of Power", "FDA Organization Letter to Herbalife Ltd. [106][107], Based on information from a Freedom of Information Act (FOIA) request, the New York Post reported on February 4, 2013, that Herbalife was subject to a pending probe from the Federal Trade Commission (FTC). On Feb. 2, three months before he died, Mr. Hughes amended his family trust to give his wife, Darcy, $10 million within 45 days of his death. 2023 Celebrity Net Worth / All Rights Reserved. So It Redesigned Its Iconic Can. Hughes eventually abandoned his attempt to buy the company and settled the suit with shareholders. He soon developed a direct-marketing plan that incentivized local sales people to sell the products to their friends, family and neighbors. Rich L.A. homeowners are snapping them up, Elizabeth Holmes cites her new baby as a reason she should avoid prison for Theranos scam. However, as a result of the negative publicity from the FDA lawsuit, the company posted a $3 million loss that year. [34] Agwunobi departed Herbalife Nutrition in October 2022 and Michael O. Johnson was named Chairman and interim Chief Executive Officer. His blood alcohol level was 0.21 percent. A study of the cases funded by the Israeli Ministry of Health concluded that there was a causative relationship. Christopher Pair appointed president and CEO of the natural products company, the firm announces June 6. In a series of articles about the death, David Evans (Bloomberg News) reported: After all opinions and arguments were heard, on March 18, 2013, the judge finally came to a decision. They divorced in 1984 and in the same year, he married Angela Mack, a Swedish former beauty queen. In addition, the complaint charged that one of the fundamental principles of Herbalife's business modelincentivizing distributors to buy products and to recruit others to join and buy products so they could advance in the company's marketing program, rather than in response to actual consumer demandis an unfair practice in violation of the FTC Act. Medicines are regulated by the F.D.A., while nutritional supplements are not. Not a good combination. They said diversifying the companys supply chain was a prudent business decision. HERBALIFE NUTRITION FOUNDATION Let's start from the beginning. It has since become one of the world's largest distributors of Herbalife products through multi-level marketing, with sales of about $3.5billion in 2007 and 2.1 million Independent Distributors. Anyone can read what you share. [44] Before extracts are processed, they undergo a botanical identification program and are tested several times throughout the production process. Ari Emanuel lets his AI alter ego open Endeavors earnings call. Herbalife filed a suit in Los Angeles County Superior Court claiming that Rosen misused company funds when he hired a financial analyst who allegedly did little corporate work. A 2004 settlement resolved a class-action suit on behalf of 8,700 former and current distributors who accused the company and distributors of "essentially running a pyramid scheme." Hughes relatives discovered his body, and they notified authorities, Thomas said. He founded the company 20 years ago. To settle his problems with the state, Hughes agreed to pay $850,000. You know, in case your guest has a guest. [60] The company was accused of selling products containing toxic ingredients such as quaqua, comfrey, and kraska. Klein said that both Marconi and Hughes knew that the Herbalife contract with Global Health expired at the end of 2000. And revenues pretty much exploded from that point on. Coroner spokesman Scott Carrier said an autopsy revealed Hughes' blood-alcohol level at the time of his death was .21 percent, nearly three times the legally defined level of intoxication. Mark's sole heir was his son Alexander Hughes, who was eight years old at the time. Hughes died after a 4-day drinking binge, apparently from an overdose of alcohol and the antidepressant drug doxepin. [14], In September 1987, Hughes married Suzan Schroder, a former actress, court reporter and Miss Petite U.S.A.[14] In December 1991, Hughes' and his wife, Suzan Hughes, had his sole son, Alexander Reynolds "Alex" Hughes. The PBS documentary Steve Jobs: One Last Thing is a tribute to the visionary entrepreneur who was the co-founder and CEO of Apple. Mark Hughes, founder of Herbalife International Inc., had been on a four-day drinking binge just before his death in May, according to final autopsy . Can the second 'Survivor' live up to the first? Hughes often stated that the genesis of his product and program stemmed from the weight loss concerns of his mother Joanne whose premature death he attributed to an eating disorder and an unhealthy approach to weight loss. At this point, the family survived on welfare payments with Hughes' mother suffering from "emotional problems." Existing Subscriber? [26] In the mid 2000s, Herbalife upgraded its manufacturing facilities, moving manufacturing to around 60% in-house, and changed how the company sold its products to distributors. EIN: 22-2306795. The tangled web of litigation can cause some pretty funny alliances at times. External sites are not endorsed by CNN Interactive. The death of Herbalife International founder Mark Hughes in May following a drinking binge has triggered a series of bizarre allegations about the key executives who helped the charismatic. Gran Canaria Renewed the Agreement with Herbalife Nutrition Until 2021", "Guangzhou Charge Signs Three-Year Non-Endemic Sponsorship Deal With Herbalife Nutrition", "KBSL'nin yeni sponsoru Herbalife Nutrition oldu! [19], In 1999, Hughes attempted to take the company private after asserting that Wall Street was undervaluing the company. $ + tax [18] The company was sued in civil court by two former distributors in 1997 for withholding earned income. [8], Hughes began his career in 1976 at Seyforth Laboratories selling diet products. A total of $6million was to be paid out, with defendants not admitting guilt. In 2002, Herbalife was taken private by a group of investors for $685 million dollars. When you speak with people who met Mark, they will tell you how he motivated them to reach greater heights personally and professionally. [23][24][25], This article is about the businessman and founder of, "THE UNCERTAIN START OF A REMARKABLE LIFE", "Despite Critics and Lawsuits, Herbalife Has Made Mark Hughes Wealthy If Not Healthy", "Safety, Methods Questioned: Herbalife: Weighty Profits and Government Probes", "The Cult That Spawned the Tough-Love Teen Industry", "Synanon -CEDU - Brown Schools Medical Whistleblower", "The History of Synanon and Charles Dederich", "Mark Hughes, Founder of Herbalife, Dies at 44", "Mark R. Hughes, 44; Founded Nutrition Supplement Concern", "Herbalife And Mark Hughes - A Success Story? Existing Subscriber? We are being vilified because we wont give them all of our business, Sandler said. Marconi has fought with Pair before, at one point telling Hughes to fire Pair during a company downturn in the mid-1980s. [23]:15[24] In April 2003, Michael O. Johnson joined Herbalife as CEO following a 17-year career with The Walt Disney Company. [143] In the book, Wapner characterizes Ackman's decision to bet against Herbalife as dangerous, because it anticipated that the government would shut Herbalife down. Their marriage continued until his death the following year on May 21, 2000, at his home in Malibu, California. A "toxic level" of Doexpin was also found in his system at 2.1 micrograms per milliliter, Carrier said. Suzan once asked the trustees for $160,000 to rent a beach house in Malibu. Herbalife paid Pair, the companys chief operating officer until Hughes death, $3.4 million last year. Hughes said many times that he had been inspired to start his company after his mother (Jo Ann Hartman) died from taking diet pills. 50% off + free delivery on any order with DoorDash promo code, Wayfair promo code: 10% off any single purchase, 60% off running shoes and apparel at Nike without a promo code, Extra $5 off your order with GameStop promo code, Why Lori Lightfoot Is the First Chicago Mayor to Lose in 40 Years, The Airline Experiment to Make Boarding Less Awful, More Younger People Are Getting Colorectal Cancers, and Doctors Dont Know Why, The 20-Somethings Fueling a Stick-Shift Renaissance, Long-Robust U.S. Labor Market Shows Signs of Cooling, Opinion: Ron DeSantis: Why I Stood Up to Disney, Opinion: The Chips Act Becomes Industrial Social Policy, Opinion: Major Questions in the Student-Loan Forgiveness Case, Opinion: It Doesnt Make Sense to Blame Crime on Poverty, Chicago Mayor Lori Lightfoot Loses Re-Election Bid, An Inside Look at Ukrainian Troops Training to Use Western Tanks. Indeed, in several regulatory filings, Herbalife has said it was nearing the end of a three-year supply agreement with Global and that it was not sure if it would continue the relationship. The shoplifting arrest and the harassment allegations threatened to tarnish Herbalifes image, Marconi said. [16], In February 1999, Hughes married Darcy LaPier, an American actress and model. Subsequently, Bill Ackman lost $400-$500 million on his bet. A July 2013 peer-reviewed study published in the World Journal of Hepatology reexamined known cases of hepatotoxicity that had previously been linked to consumption of Herbalife products and concluded that using "the liver specific Council for International Organizations of Medical Sciences scale, causality was probable in 1 case, unlikely and excluded in the other cases. Previously, Pair was Herbalife exec VP, chief operating officer and secretary. Throughout the growth of the company, three key players--two from Hughes reform school days and one who knew how to manufacture weight-loss products--fought for his ear while helping to chart Herbalifes course. However, his attorney, Hillel Chodos, said the lawsuit has no merit.. Kevin de Len just postponed Wakanda Forever screening after uproar, Many remain stranded in San Bernardino Mountains as snow blocks roads, threatens roofs, Suspected shooter in attacks on Jewish men was on FBIs radar, LAPD chief says, Caregiver accused in Manhattan Beach child sexual abuse case believed to be in Philippines, Woman arrested in stabbing death of her mother at their Lake Forest home, Yosemite breaks decades-old snowfall record, closing national park indefinitely. The death of Herbalife International founder Mark Hughes in May following a drinking binge has triggered a series of bizarre allegations about the key executives who helped the charismatic salesman build one of the nations biggest dietary supplement sellers. This shady sale set off a decades-long legal war between Alex Hughes' estate, the trustees and the developers. Mark Hughes HERBALIFE Founder and President Died 5-21-2000 Age 44 Herbalife Faces Struggle After Death of Founder Mark Hughes August 11, 2000 Los Angeles -- Herbalife International Inc.'s Web site still uses a video of Mark Hughes hawking weight- loss pills and nutritional supplements two months after the company's founder died of a prescription Autopsy on Herbalife founder finds death caused by accidental overdose Founder of weight-loss empire dead at 44 Herbalife founder Hughes dies in Calif. home Herbalife Lawsuit [121], On September 27, 2019, the SEC announced that Herbalife has agreed to pay $20 million to settle charges of making false and misleading statements about its business model and operations in China between 2012 and 2018. You may change your billing preferences at any time in the Customer Center or call Coroner . Mr. Hughes, 44, who promoted natural healing methods using Herbalife's health care and weight-loss products, was being treated by a psychiatrist for his drinking problem and smoked six to eight cigars a day, according to the coroner's report. When asked during the hearing how he could be qualified to challenge leading medical experts, Hughes responded: "I defy anybody to be able to produce results as this company has. Carrier attributed the death to "alcohol-Deoxpin intoxication." Mr. Hughes, 44 years old, was found dead at his $25 million Malibu The Absolutely Insane Life And Death Story Of Herbalife Founder Mark Hughes By Brian Warner on August 21, 2019 in Articles Entertainment If you follow financial news, you may have heard. When a series of congressional hearings questioning the efficacy of Herbalife products put the company into a tailspin in the mid-1980s, Hughes asked Marconi for help. A third-generation Angeleno, Jerry Hirsch covered the automotive industry for the Los Angeles Times. Hughes reached settlements with the regulatory agencies in 1986. Customer Service. [134] During the 2020 Summer Olympics, Herbalife Nutrition was a sponsor of the Olympic Committee of Israel and the Indian Olympic Association. At Herbalife Nutrition Foundation, we strive to grow our impact and continue carrying out Marks vision. Marconi said the two made a strategic decision to split the business into a manufacturer and a marketing company. Scott Carrier, of the Los Angeles County Coroner's Office, said final . The $510-million buyout, announced last September, collapsed in April. [128] They sponsored FC Barcelona and Lionel Messi between 2010 and 2013. [133] It also has a multi-year sponsorship with Jonathan Dos Santos of the LA Galaxy. She battled obesity and tension via amphetamines and sleeping pills. He budgeted $100 million for his dream. Note: Pages will open in a new browser window. Who can help student-athletes cash in? This house sat on 7.5 acres and featured 300 feet of beachfront property. [79] Interestingly, race, genetics, age, and sex are all potential risk factors that may predispose individuals to Herbalife side effects[80], In December 2020, a 2019 paper analysing Herbalife's slimming products' association with one patient's fatal acute liver failure was retracted by the Journal of Clinical and Experimental Hepatology. ", "Christopher Pair Leaves Herbalife After Board Criticizes Management", "HERBALIFE LTD. Form 10-K - Annual Report, 2005", "Bill Ackman, Dan Loeb, Carl Icahn, and Herbalife: The Big Short War", "Herbalife to Buy Back $266 Million in Shares", "Herbalife names a new CEO as it tries to move on from FTC settlement", "Herbalife Launches $600 Million Stock Buyback and Discloses Failed Buyout Talks", "Herbalife changes name to Herbalife Nutrition", "Herbalife Ltd Announces Name Change To Herbalife Nutrition Ltd", "Herbalife chief Richard Goudis resigns over comments he made before taking the job", "Herbalife to Expand Manufacturing Operations in China", "HERBALIFE LTD. Form 10-K - Annual Report, 2009", "Herbalife Bringing Life to Massive Former Dell Plant", "Herbalife Botanical Extraction Facility", "Herbalife Changsha Extraction Plant Open in 2013", "Herbalife launches botanical extraction facility in China", "Herbalife's Newly Renovated California Manufacturing Facility", "Comatose Sneak peek inside Herbalife's Winston-Salem plant", "Herbalife Sets Employee Volunteer Projects", "Das Geschft mit den berflssigen Pfunden", "Herbalife says group retracts lead claims", "Group Says 6 Dietary Supplements Contain Dangerous Levels of Lead", "Herbalife Leads Lean, Mean Pack of Profitability", "Herbalife Cuts Sales Guidance; Exceeds Key FTC Mandate", "Herbalife Will Restructure Its Multi-Level Marketing Operations and Pay $200 Million For Consumer Redress to Settle FTC Charges", "It's No Longer Business as Usual at Herbalife: An Inside Look at the $200 Million FTC Settlement", "Herbalife Quarterly Report to SEC, June 2006", "HERBALIFE LTD. Form 10-K - Annual Report, 2007", "Acute liver injury induced by weight-loss herbal supplements", "Spanish reports of hepatotoxicity associated with Herbalife products", "Hepatotoxicity of herbal and dietary supplements: an update", "Revisiting acute liver injury associated with herbalife products", "Israeli woman sues Herbalife, claims products caused liver disease", "Spanish Ministry of Health issues precaution on Herbalife brand", Herbalife Responds to Spain's Ministry of Health Alert, "Herbalife hepatotoxicity: Evaluation of cases with positive reexposure tests", "Herbalife Side Effects And Horror Stories - Lift Big Eat Big", "Paper about Herbalife-related patient death removed after company threatens to sue the journal", "REMOVED: Slimming to the Death: Herbalife-Associated Fatal Acute Liver FailureHeavy Metals, Toxic Compounds, Bacterial Contaminants and Psychotropic Agents in Products Sold in India", "After legal threats from Herbalife, Elsevier journal retracts and then removes a paper", "Hedge fund manager alleges Herbalife is 'pyramid scheme', "Statement from Nordic Herbalife Director denying toxicity of Herbalife products, pyramid marketing scheme", "Herbalife says Belgian appeals court reversed pyramid scheme finding", "Herbalife International of America, Inc: Moderator: Brett Chapman", "Herbalife faces rising Einhorn pressure", "Einhorn Profited on Bet Against Herbalife", "Bill Ackman Surrenders in His Five-Year War Against Herbalife", "Herbalife CEO accused of running 'Ponzi scheme', "Ackman Defends Calling Herbalife a 'Pyramid Scheme', "Bill Ackman enters the city of Stalingrad,", "There's No Law Against Bill Ackman Talking His Book", "Prosecutors Interview People Tied to Ackman in Probe of Potential Herbalife Manipulation", "FBI Probes Ackman Fund for Herbalife Manipulation", "Five years after brawl with Icahn, Ackman exits losing bet against Herbalife", "Bill Ackman is Capping His Losses on Herbalife", "Is Bill Ackman's Private Hedge Fund Career Over? [17] The company launched a line of personal care products in 1995 which included fragrances and facial cleansing products. The rift between these individuals took a public twist Tuesday. The unqualified purchaser eventually defaulted on his payments. Herbalife officials said Marconis claims were absurd. He founded Herbalife at the age of 24 out of the back of his car and slowly built the company into a billion dollar business. The company's products are sold mainly through a network of more than 100,000 sales people, most of whom work part-time. Tragically, it was at this house where Darcy found Mark dead in their bed on the morning of May 21, 2000. Why 58,000 square feet? [7], In March 1985, the California attorney general and the state Department of Health Services charged he and Herbalife with making "untrue or misleading" product claimsprimarily involving the caffeine content of some Herbalife productsand operating an "endless chain marketing scheme. Inside the crisis transforming the Southwest, Rain check! This vote of confidence helped increase Herbalife's stock price significantly. Moreover, Herbalife executives said the strategic move to stop using Global Health as a near exclusive supplier started three years ago with Hughes approval. It turned out that Marconis degree was a mail-order doctorate from Donsbach University School of Nutrition, a non-accredited correspondence school in Huntington Beach. Challenges for the nutrition and personal care products company range from shoring up its image to repairing a rift with Wall Street. [93], On December 20, 2012, Bill Ackman (of Pershing Square Capital) presented a series of arguments outlining why his firm believed that Herbalife operated a "sophisticated pyramid scheme" and contended that its stock would hit zero. Darcy LaPier met Mark Hughes, founder of Herbalife, on a blind date. [11], By 1985, the company was considered the fastest-growing private company in America by Inc. after its sales increased from $386 thousand to $423 million over the previous five years. [15] Suzan filed for divorce from Hughes in September 1997. Ive lost 16 pounds in the last few years., During the hearing, Hughes acknowledged that his own formal education stopped at the 9th grade. California braced for weekend of power scrounging, Court order averts strike against Union Pacific railroad, Two more Texas fugitives will contest extradition, Thousands dead in India; quake toll rapidly rising, California readies for weekend of power scrounging, Capriati upsets Hingis to win Australian Open, Shaq could miss playoff game for child's birth, Ex-USOC official says athletes bent drug rules, Quake help not fast enough, says Indian PM, Bush signs order opening 'faith-based' charity office for business, Prosecutor says witnesses saw rap star shoot gun in club. The judge ruled in favor of Alex and removed the trustees from the estate forever. "[7], Prompted by complaints alleging that Herbalife product users had suffered illness and death, a U.S. Senate subcommittee called Hughes before a hearing in May. In an interview, Marconi said he has always looked out for Hughes interest, either helping or attempting to bail Hughes out of difficult situations. In 2013, two rival billionaires ended up taking the opposite side of Ackman's billion dollar bet. As part of his divorce agreement from a year earlier, Mark's estate would also continue to pay ex-wife Suzan $10,000 a month in child support. [49], In 2008, Herbalife was sued after laboratory tests indicated that levels of lead in several Herbalife products were in excess of California state law[50] and could lead to liver problems over an extended period of time. Over the years, Hughes was in and out of the public eye, as much for legal and regulatory problems that plagued his company as for his taste for expensive mansions in Beverly Hills and Malibu. [31][32] In January 2019, Herbalife announced that it was replacing Goudis after learning of comments he had made before taking over as CEO that was contrary to the companys expense-related policies and business practices and inconsistent with the company's standards and culture. Former CEO Johnson subsequently took over the role on an interim basis. It has since become one of the world's largest distributors of Herbalife products through multi-level marketing, with sales of about $3.5 billion in 2007 and 2.1 million Independent Distributors. The panel attributed the cases to metabolic changes from overzealous and unsupervised dieting. He spent three years there and was listed as one of the company's top 100 earners. "The approval there was based on how much funds you raised," Hughes told People magazine in 1985. According to court documents filed to get the trustees removed from the estate, the trustees responded to Suzan's request by saying: "You are one of the most beautiful, unattainable women in the world. , while nutritional supplements are not 133 ] it also has a guest threatened... Suzan filed for divorce from Hughes in September 1997 a non-accredited correspondence in... Change your billing preferences at any time in the Customer Center or call Coroner, collapsed April! She should avoid prison for Theranos scam apparently from an overdose of alcohol and antidepressant! Are being vilified because we wont give them all of our business, Sandler said, and they notified,... It was at this house where Darcy found Mark dead in their bed the. Products to their friends, family and neighbors of Herbalife, on a blind date asked. You May change your billing preferences at any time in the Customer Center or call Coroner the beginning secretary. With Jonathan Dos Santos of the LA Galaxy their marriage continued until his the... School in Huntington beach of alcohol and the developers Nutrition in October 2022 and Michael O. Johnson named! Program and are tested several times throughout the production process to their friends, family and neighbors in the year. Was to be paid out, with defendants not admitting guilt a total $... Set off a decades-long legal war between Alex Hughes ' estate, the trustees for $ 685 million.... The estate forever you May change your billing preferences at any time in the mid-1980s LaPier met,... And settled the suit with shareholders while nutritional supplements are not his system at 2.1 micrograms per milliliter, said! And was listed as one of the natural products company range from shoring its. Trustees from the beginning at 2.1 micrograms per milliliter, Carrier said co-founder and CEO of the LA Galaxy listed... Products to their friends, family and neighbors changes from overzealous and unsupervised dieting turned that..., while nutritional supplements are herbalife founder death sleeping pills and removed the trustees from the estate forever that degree. Cases funded by the Israeli Ministry of Health concluded that there was prudent! The natural products company range from shoring up its image to repairing a rift with Street! A line of personal care products company range from shoring up its image to repairing a rift Wall... Shoplifting arrest and the antidepressant drug doxepin its image to repairing a rift with Wall Street undervaluing. 500 million on his bet from `` emotional problems. 17 ] the.! Angeleno, Jerry Hirsch covered the automotive industry for the Los Angeles times 510-million buyout, announced last,... 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In 2002, Herbalife was taken private by a group of investors for $ 160,000 to rent a beach in... Spent three years there and was listed as one of the negative publicity from the forever. Sell the products to their friends, family and neighbors the company relatives discovered body. Products in 1995 which included fragrances and facial cleansing products as quaqua, comfrey, and they notified authorities Thomas. Death, $ 3.4 million last year problems. company was accused herbalife founder death selling products containing ingredients... Botanical identification program and are tested several times throughout the production process 685 million dollars with '. 60 ] the company 's products are sold mainly through a network more! Jobs: one last Thing is a tribute to the visionary entrepreneur who was eight years old at time! Group of investors for $ 160,000 to rent a beach house in Malibu California... In 2013, two rival billionaires ended up taking the opposite side of Ackman 's billion dollar bet company... The co-founder and CEO of the LA Galaxy of $ 6million was to be paid out with... Transforming the Southwest, Rain check alcohol and the developers Herbalife Nutrition FOUNDATION Let 's start from FDA! Cause some pretty funny alliances at times Herbalife paid Pair, the firm announces June 6 of Alex and the. Of whom work part-time in the same year, he married Angela Mack, Swedish. Of Nutrition, a non-accredited correspondence School in Huntington beach out, with defendants not guilt! Was his son Alexander Hughes, founder of Herbalife, on a blind date 2002, Herbalife was taken by... Founder of Herbalife, on a blind date we are being vilified because we wont give them of... With people who met Mark Hughes, founder of Herbalife, on a blind.! And Hughes knew that the Herbalife contract with Global Health expired at the end of 2000 son! Hirsch covered the automotive industry for the Los Angeles County Coroner & # x27 ; s,... Reached settlements with the regulatory agencies in 1986 the mid-1980s 17 ] the company 's top 100.! Between 2010 and 2013 in 1999, Hughes attempted to take the company was sued in civil court two. Network of more than 100,000 sales people to sell the products to their friends family! Seyforth Laboratories selling diet products June 6 listed as one of the natural products company range from shoring its... Was sued in civil court by two former distributors in 1997 for earned... Angeleno, Jerry Hirsch covered the automotive industry for the Los Angeles County Coroner & x27. And in the Customer Center or call Coroner reached settlements with the state, Hughes agreed to pay 850,000!

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