Herbalife Ltd. nutrition clubs lose $12,000 per year, on average, hedge-fund manager Bill Ackman alleged in what he's billed as the most important presentation of his career.
Ackman made the claim during an event in New York, the latest salvo in a nearly two-year campaign to shut down the seller of supplements and weight-loss shakes. Ackman, who is positioned to profit from Herbalife's falling share price, said his Pershing Square Capital Management investigated 240 of the company's clubs in several countries.
Ackman accused Herbalife of operating an illegal pyramid scheme and spent about $50 million to investigate the company, lobby regulators to close it and host public presentations to level their allegations. Ackman initially sold short $1 billion of Herbalife's shares before restructuring his investment with options, details of which he has declined to disclose.
Pershing accuses the company of misleading distributors, misrepresenting sales figures and selling a commodity product at inflated prices. Regulators including the U.S. Federal Trade Commission and law enforcement are investigating the allegations.
"We have complete confidence in our compliance as it relates to regulations," Herbalife Chief Financial Officer John Desimone said in an interview with CNBC ahead of Ackman's presentation. "The FTC inquiry will actually be something that puts this behind us. There's a lot of misinformation out there in the marketplace."
The company also released results from an economic analysis showing that it's not a pyramid scheme as Ackman asserts. According to the research by Walter H. A. Vandaele, an economist at Navigant Economics, 97 percent of Herbalife's products are purchased for end-use consumption, Herbalife said.
Herbalife's stock rose 6% to $57.26 in early trading.. After Ackman made television appearances Monday, during which he drew comparisons between Herbalife and Enron Corp., the shares dropped 11%, bringing their year-to-date decline through yesterday to 31%.
Ackman said his firm will turn over the findings detailed today to regulators.
"This has been 18 months of always the bark is worse than the bite," Desimone said ahead of the presentation. "Everything's a gotcha until it's not a gotcha."
Copyright © 2014, Los Angeles TimesAnda sedang membaca artikel tentang
Ackman says Herbalife nutrition clubs lose $12,000 on average
Dengan url
http://sehatgembiralami.blogspot.com/2014/07/ackman-says-herbalife-nutrition-clubs.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Ackman says Herbalife nutrition clubs lose $12,000 on average
namun jangan lupa untuk meletakkan link
Ackman says Herbalife nutrition clubs lose $12,000 on average
sebagai sumbernya
0 komentar:
Posting Komentar