More than two years, Bill Ackman has been publicly campaigned against Herbalife, balming the company for being a multi-level marketer that sells weight loss shakes. Ackman believes Herbalife targets poor people from the Latino community.
Ackman is betting that the stock goes to zero, believes that regulators, specifically the Federal Trade Commission, will shut the company down. (The FTC opened an investigation in Herbalife in March 2014). Now he says: This is a better time than ever to short Herbalife’s stock, according Bloomberg News reports.
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Meanwhile Ackman is losing money on his infamous Herbalife short.
Herbalife (NYSE: HLF) today issued the following statement in response to statements made today by Bill Ackman:
“There is simply no truth to Bill Ackman’s statements and this is just another stunt in his campaign, a campaign that is reportedly under criminal investigation by the FBI and the Department of Justice, to drive down the stock price in an effort to enrich himself and his investors in advance of options expiring on Friday. Unfortunately we have seen this pattern of activity before, especially before the third Friday of each month, when certain options expire.”
