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Bill Ackman Continues 4-Year Campaign Against Herbalife In Latest Videos

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Bill Ackman Continues 4-Year Campaign Against Herbalife In Latest Videos
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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).

Videos

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.

Related Link: Icahn Says Ackman Is "Just Dead Wrong" On Herbalife

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.

Retaliation

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

DateFirmActionFromTo
Apr 2016BarclaysTerminatesOverweightOverweight
Aug 2015Pivotal ResearchMaintainsBuy
May 2015Canaccord GenuityMaintainsBuy

View More Analyst Ratings for HLF
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Posted-In: Andrew LeftAnalyst Color Biotech Short Sellers Hedge Funds Analyst Ratings Trading Ideas General Best of Benzinga

 

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