Ackman attacks Herbalife again with Chinese allegations

|About: Herbalife Ltd. (HLF)|By:, SA News Editor

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.