Bill Ackman Continues 4-Year Campaign Against Herbalife In Latest Videos
Bill Ackman has received a lot of attention this year for his huge losses on Valeant Pharmaceuticals Intl Inc (NYSE: VRX), but this week, Ackman has turned his attention to another big losing bet: Herbalife Ltd. (NYSE: HLF).
This week, Ackman is releasing a series of videos presenting what he sees as damning evidence of predatory behavior and a pyramid scheme at Herbalife. He claims that Herbalife pays members more for recruiting other members than for selling the company’s products. Ackman made a $1 billion short bet on Herbalife’s stock back in 2012 and has lost money on the position up to this point.
Herbalife has repeatedly denied Ackman’s accusations, but the FTC opened an investigation into the company’s practices back in 2014. In May, Herbalife said that it was nearing a potential $200 million settlement related to the investigation.
Ackman’s Pershing Square fund was reportedly down 25.6 percent in Q1 of 2016 after it lost 20.5 percent in 2015.
Herbalife’s stocks are up 11.2 percent this year and 30.7 percent since the beginning of December 2012 when Ackman first announced his short bet.
Ackman will be posting his videos this week on his website www.factsaboutherbalife.com.
Herbalife has launched its own website, www.therealbillackman.com, which attacks Ackman’s history as a fund manager.
Disclosure: The author holds no position in the stocks mentioned.
Latest Ratings for HLF
|Aug 2015||Pivotal Research||Maintains||Buy|
|May 2015||Canaccord Genuity||Maintains||Buy|
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