Seeking Alpha

Ackman attacks Herbalife again with Chinese allegations

  • Bill Ackman has accused Herbalife (HLF) of breaking direct-selling laws in China - the nutrition company's fastest growing market - by making recruits pay entry fees and allowing distributors to recruit new members.
  • The allegations appear to be Ackman's latest attempt to prompt authorities to investigate Herbalife, on which he has a $1B short position.
  • The company responded by saying it complies with Chinese rules, while legal experts in the country said the law is anyway unclear and enforcement is lax.
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Comments (8)
  • monkey see
    , contributor
    Comments (618) | Send Message
     
    Ackman took one from column A, one from column B and one from column C and got nothing but indigestion. I understand that Ukraine is nice this time of year.
    12 Mar 2014, 04:48 AM Reply Like
  • herbs4mike
    , contributor
    Comments (2079) | Send Message
     
    What legal experts????? I think these so called experts are wrong. Because a day after Nuskin was busted out in the Chinese News, enforcement was there. I've been in China. When something is against the law, and it is an outside entity, it is dealt with exceptionally fast. Also, knowing Herbalife, and I know them well, They are well within the rules. Herbalife gets really mad when a distributor jeopardizes the Herbalife business within a country, usually a major sanction to include termination is in route. So I can confirm Herbalife will be "on it", cause they always are. They have also been given more licenses from other provinces. That wouldn't happen if Herbalife's practices were questionable. I'm sure Ackman will try to "donate" to some Chinese cause. However, there are already a lot of distributors there. It will be next to impossible to undo what has been blessed by the Chinese government already. They won't want to lose face in front of their constituents. That means alot there in China. Unfortunately, it doesn't mean a thing confronted with a lot of Ben Franklins in the States. And according to the NYTimes, BA has no problem using his cash to make people change their opinions.
    12 Mar 2014, 06:39 AM Reply Like
  • Cestlavie
    , contributor
    Comments (259) | Send Message
     
    Ackman has a better chance of getting some Chinese mosquitos to fly into a cat 4 hurricane and make it into the eye than he does to crush HLF in China or here in the USA. He's not a forest gump smart guy.
    12 Mar 2014, 07:00 AM Reply Like
  • sacathanas
    , contributor
    Comments (1726) | Send Message
     
    We've gone from completely ineffective to a complete yawner.
    12 Mar 2014, 07:31 AM Reply Like
  • hdman
    , contributor
    Comments (27) | Send Message
     
    Ackman should be investigated by the SEC along with Left and Block these people should be in jail with Bernie!
    12 Mar 2014, 08:58 AM Reply Like
  • Bystander from Canada
    , contributor
    Comments (101) | Send Message
     
    There's a reason Ackman is having a desperate time coming up with verifiable 'victims' in spite of his relentless lobbying and bribes: they just don't exist in the numbers that would support his accusations.
    12 Mar 2014, 09:48 AM Reply Like
  • WulfherSS
    , contributor
    Comments (363) | Send Message
     
    Ackman needs to be investigated by the SEC. He is clearly trying to manipulate the market. I can hardly wait for the next time Carl crushes him and hopefully finishes him off for good.
    12 Mar 2014, 11:15 AM Reply Like
  • jmj858
    , contributor
    Comments (104) | Send Message
     
    If the current price of hlf is any indication, it appears the market was less than enthusiastic with Ackman's latest allegations. This might be a good time for the shorts to begin acting a little more responsibly with their "investments".
    12 Mar 2014, 11:16 AM Reply Like
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