Carl Icahn Responds To Herbalife's Settlement With The FTC

's stock soared higher early Friday morning following reports that the U.S. Federal Trade Commission (FTC) concluded the company is not operated as a pyramid scheme. Billionaire investor and major Herbalife shareholder Carl Icahn

following the news report. Related Link:

Icahn stated that his successful investment in Herbalife is attributed to his in-depth investment research and understanding of the complex and unique issues that the company faces, namely allegations of operating as an illegal pyramid scheme. "As a result of our research, over three years ago we concluded that Herbalife was not a pyramid scheme," Icahn wrote. "The FTC settlement announced today, coming after a two-year investigation also concluded that Herbalife is not a pyramid scheme – a conclusion that obviously vindicates our research and conviction." Icahn added that the shorts, including Bill Ackman, have been "completely wrong." However, Icahn did acknowledge that him and Ackman are still on "friendly terms" and Herbalife has been a topic they have "agreed to disagree on." Icahn also noted that Herbalife's Board of Directors approved a request to increase his ownership limit from 25 percent to 34.99 percent of the company's outstanding shares. Now that the FTC and Herbalife reached a settlement, it is appropriate for Herbalife to "consider a range of strategic opportunities" as well as "strategic transactions."

CNBC's Herb Greenberg pointed out a flaw in Icahn's statement. In a Tweet, Greenberg cited Icahn's statement that the "shorts have been completely wrong" and then went on to hypothetically ask if this is the case then why does the company have to pay a $200 million fee and change some of its business practices.