Connect with us

Hi, what are you looking for?

Jewish Business News

World News

Litigation-Frenzied Bill Ackman Now Suing US Government

Bill Ackman facebook

Bill Ackman is on the attack again, and this time, the target is the U.S. government.  We thought Herbalife (HLF) was worried with Bill Ackman’s constant onslaught against the company in attempts to “prove” it is a Ponzi scheme, which, no doubt, would help his challenged and generous short position. The overactive activist investor has even alleged that Allergan (AGN), in which he has a substantial stake, is pursuing a “scorched Earth policy” to ward of a takeover from Valeant (VRX). Now Ackman is taking on no less than the U.S. government over Fannie Mae (FNMA)  and Freddie Mac(FMCC); Ackman’s Pershing Capital is the dominant shareholder in both insurers.

The government’s takeover of Fannie and Freddie during the Great Recession in 2008, allegedly strips shareholders of “any economic value in their shares, ” according to Pershing Square. Ackman goes on to allege that the government agreed to strip all profits from both companies in the bailout. Pershing Square attorney, Laurence Rosenberg, believes this could even violate the 5th Amendment, “which prohibits taking private property for public use without just compensation.”

Taxpayers bailed out Freddie and Fannie to the tune of $187 million. In the ensuing years, the companies sent over that sum back to the Treasury Department, but those extra amounts were considered as return on the U.S. government’s investment. Ackman and shareholders are crying “foul.”

Perhaps Ackman has a stronger case about Freddie and Fannie than he has with Herbalife, but for those who have followed Ackman in the news, it feels like he’s never quite happy on any given week unless he’s on a the warpath.

1 Comment

1 Comment

  1. TexTex

    August 19, 2014 at 5:16 am

    Herbalife operates very similar to Amway, the world’s largest MLM scam. Read about both of them here:

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.



You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...


The contract signed between the Israeli government and Pfizer shows clearly and unequivocally that this is a clinical study on humans - The agreement...


Now Platika joins and elite club of $10 billion plus Israeli firms.


After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...