Herbalife

Attention eBay: Uncle Carl can be all sweetness and light, if you just do what he tells you to do. It might also help if you could get Bill Ackman to short your stock. Read more »

Bill Ackman’s Persistent Lobbying Efforts Pay Off

This week was looking like one that Bill Ackman would want to forget. It began with a New York Times article that read like something Herbalife CEO Michael Johnson and Carl Icahn might have collaborated on. It continued with yesterday’s $300 million Fannie Mae/Freddie Mac hiccup. Even Ackman’s latest presentation on what he very sincerely hopes is a pyramid scheme, accusing Herbalife of breaking Chinese laws, failed to either lift his spirit or dent its stock price. But this has definitely accomplished the latter, and almost certainly the former. Read more »

  • 11 Mar 2014 at 6:12 PM

Recommended Reading From Herbalife

Perhaps you noticed that The New York Times spilled a very great deal of ink on Bill Ackman’s crusade against Herbalife on Sunday. In short, sayeth the Grey Lady: Ackman spent $1 billion betting that Herbalife was a fraud and has spent the ensuing 15 months or so asking people in power to prove his hunch.

Well, if you hadn’t noticed, Herbalife would like you to take a peek. Read more »

Even better than the last time he asked, when the only thing that happened was the opposite of what he wanted, and cost him a large sum of money. Read more »

The proposed order was drafted by Herbalife and Dana Bostick, the former California distributor who is suing the company under the state’s “chain letter,” or pyramid scheme, law. It’s common for parties to come up with protective orders that forbids sharing of confidential information obtained during discovery — but the judge balked when Herbalife went a step further and suggested a “highly confidential, lawyers’ eyes only” category for “high-risk” experts that have had anything to do with Pershing Square since 2010 or might in the next three years. It defined a “Pershing Square person” as “any present or former directors, officers, executives, partners, principals, trustees, employees, agents, attorneys, accountants, advisors and representatives, or any other person(s) known, believed or suspected to be acting or purporting to act on its behalf, now or at any previous time since January 1, 2010, including but not limited to William Ackman and Sullivan & Cromwell LLP.” [NYP]

Last week, Herbalife shares took a bit of a dive after a senator suggested that the SEC and FTC might want to consider possibly looking into whether anything Bill Ackman has said about the company might be true. This week, they’re back to costing Pershing Square investors money, because Herbalife’s chief cheerleader has decided he’ll only be singing its praises privately from here on out, and to the choir, at that, presaging something very bad for said Pershing Square investors, people say. Read more »

FTC Toying With Bill Ackman’s Emotions

If you hadn’t previously heard, Pershing Square Capital Management’s Bill Ackman thinks that nutritional supplements company Herbalife is a big scam, a belief that has cost him (and his investors) a half-billion dollars. Nevertheless, he has stated that he remains confident that the white knights at the Federal Trade Commission will eventually ride in on their white horses and shut Herbalife down, thereby vindicating his belief that one day, Herbalife shares will be worth nothing, rather than more and more with each passing day.

Imagine his excitement, then, to read yesterday that FTC was cracking down on bogus weight-loss products. Well, Bill undoubtedly thought to himself, Herbalife sells a whole range of bogus weight-loss products! Alas, if the Pershing Square founder is still looking for the name “Herbalife” among the companies who paid the FTC $34 million to go away, he will be doing so for some time to come. Read more »