Herbalife is surging after a report that the company has settled its FTC investigation (HLF)

HERBALIFE (Independent Distributor)/Flickr

Herbalife shares jumped by as much as 8% in trading Tuesday following a report that the company has reached a settlement agreement with the Federal Trade Commission. 

The New York Post reported, citing someone familiar with the matter, that Herbalife reached an agreement in principle to settle an investigation into whether it is an alleged pyramid scheme. 

An announcement of a deal could come later Tuesday although nothing is final yet, the Post reported, adding that Herbalife has agreed to a hefty fine. 

The FTC opened a probe into the company after hedge fund manager Bill Ackman alleged that Herbalife operated like a pyramid scheme. The company sells weight-management products through a network of independent distributors who earn sales commissions. 

Herbalife said in a regulatory filing in February that it was in talks to potentially resolve the probe. 

CNBC's Scott Wapner and Fox Business News' Charles Gasparino said, citing sources, that the report of a settlement is untrue. 

Herbalife was not immediately available for comment. 

Here's a chart showing the spike in trading:HERBALIFE (Independent Distributor)/Flickr

NOW WATCH: FORMER GREEK FINANCE MINISTER: The single largest threat to the global economy