As those of you who keep close tabs on hedge fund manager Bill Ackman's life work know, last week a judge dismissed a shareholder suit against his arch nemesis, the diet shake 'n supplement purveyor Herbalife. Since Ackman has said many, many times that that he will go to the ends of the earth to see Herbalife die in a fire, and a win for shareholders in the suit could've gone a long way toward pouring the gasoline and lighting a match, some wondered how Ackman was taking the news. Was he devastated? Inconsolable? Worried that the dismissal was tacit approval of Herbalife's business practices? Apparently the answer is none of the above and, in fact, the ruling means very little. Herbalife, according to the hedge fund, is still a criminal organization that will one day get its comeuppance and if Ackman were the judge presiding over this thing, he'd hold all these shake jockeys in contempt.
The hedge fund firm run by activist investor William Ackman said on Friday a federal judge's recent dismissal of a shareholder lawsuit against Herbalife Ltd did not "exonerate or bless" its business practices. Pershing Square Capital Management LP, which in December 2012 revealed a $1 billion bet against the weight loss and nutritional products company, said recent news reports it was behind the lawsuit, or had sued Herbalife itself, were false. It also said that, despite what it called Herbalife's "misleading public suggestions," U.S. District Judge Dale Fischer in Los Angeles did not address whether Herbalife was an illegal pyramid scheme, as Ackman has contended...In its statement on Friday, Pershing Square said it believed the result of the various probes "will be that Herbalife will be shut down or will be required to modify its deceptive practices so substantially that the company will not be able to survive."
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