Ackman Crushed: Herbalife Soars 14% After FTC Concludes "Not A Pyramid Scheme"
By Tyler Durden
Two years after Bill Ackman unleashed the longest presentation in the world and battled Carl Icahn over his “take it to the grave” short position in Herbalife, it seems the hedge fund manager just got a death blow from The FTC:
- *FTC SAID TO DETERMINE HERBALIFE IS NOT PYRAMID SCHEME: DJ
- *HERBALIFE TO ANNOUNCE $200M SETTLEMENT WITH FTC TODAY: DJ
And HLF is soaring 14% in the pre-market.
As Bloomberg report:
- Herbalife, FTC expected to announce settlement today, DJ said, citing people familiar.
- HLF to pay $200m over claims of misrepresentations
- HLF agrees to change some business practices
- Settlement requires HLF to prove retail sales
- HLF up 15% premkt
- HLF short interest 21% of float: Markit
The U.S. Federal Trade Commission has determined Herbalife is not a pyramid scheme, according to a report by Dow Jones, citing sources.
Under the settlement with regulators, Herbalife is expected to pay $200 million over claims of misrepresentation, Dow Jones said. The company also agreed to change some of its business practices and will have to prove its retail sales numbers are accurate.
Source: Ackman Crushed: Herbalife Soars 14% After FTC Concludes "Not A Pyramid Scheme"
