LOS ANGELES (AP) — Herbalife says it has agreed to settle a lawsuit that claimed the company’s business structure and marketing practices violated federal and state laws.

The weight loss and nutritional supplements company did not elaborate in its statement Friday on the terms of the proposed settlement in the class-action case.

The lawsuit was filed in April 2013 in a California federal court by a former salesman.

Herbalife Ltd. maintains it hasn’t done anything wrong and the lawsuit is meritless. It says it’s seeking to settle the case in hopes of avoiding the potential cost and distraction of prolonged litigation.

The company has also been defending itself against activist investor Bill Ackman, who runs Pershing Square Capital Management. Ackman has bet heavily against the company’s stock, describing Herbalife as a pyramid scheme.

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