Bill Ackman vows to unveil 'incredible' fraud at Herbalife
Tuesday 22 July 2014
Acitivist hedge fund investor Bill Ackman vowed late on Monday he would would on Tuesday unveil an “incredible fraud” at nutritional supplement company Herbalife that he claimed will cause the company to collapse. Herbalife shares fell about 11 per cent.
Ackman’s Pershing Square hedge fund has made a roughly $1 billion bet selling Herbalife’s shares “short” — meaning he will make money if the stock falls.
Ackman alleges the company is a kind of pyramid scheme, pitching him directly against Carl Icahn, another activist investor, who took a “long” position in the shares of the company, which has a stock market value of more than $5 billion.
“You are going to learn why Herbalife is going to collapse … this is the largest fraud, public fraud in terms of scale …” Ackman alleged on CNBC.
“We have hundreds of hours of recorded video, audio, we have internal documents that were given to us by some employees that felt it was in the best interests of the world to know what is really going on at the company …
"This will be the most important presentation that I have made in my career," he said. "We won't disappoint.” Pershing Square said the presentation will take place in a conference centre near Times Square around 2.15pm UK time on Tuesday.
Herbalife has strenuously denied Ackman’s allegations, calling him the “worst of Wall Street.”
“Herbalife continues to face an unprecedented and unrelenting attack from Pershing Square to support its $1 billion bet to manipulate and drive Herbalife's stock price to zero to the detriment of our investors, members, customers and employees,” said Herbalife in a statement.
“Herbalife is confident that the facts are on its side and that it will overcome Pershing Square's campaign of misinformation about the company as the truth about Pershing Square's increasingly desperate accusations is revealed.”
- 1 Scottish referendum: So how about the English now being given a chance to split from England?
- 2 Friends 20th anniversary: Alison Jackson photographs reunited cast
- 5 Free U2 album: How the most generous giveaway in music history turned into a PR disaster
Scottish independence referendum: Frankie Boyle reacts to nation's 'No' vote - 'To be fair, I've always hated Scotland'
London council removes 'unacceptable' Stamford Hill posters telling women which side of the road to walk down
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish referendum: Police struggle to control Unionist rally in Glasgow's George Square
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Archbishop of Canterbury admits doubts about existence of God
Portuguese academic says British are 'filthy, violent and drunk'
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...