Activist investor Bill Ackman is bracing for possible litigation from Herbalife Ltd. (NYSE:HLF), the nutrition company that he has labeled a ‘pyramid scheme’ with a stock price that should fall to ‘zero’, according to FOX Business Network (FBN)’s Charlie Gasparino. Gasparino says “Ackman’s attorneys believe the possible lawsuit could be filed at or before Herbalife is scheduled to hold its much-anticipated investor day in New York on Thursday.
According to Gasparino, the lawsuit against Ackman may allege “tortuous interference,” meaning that the hedge fund investor intentionally damaged the reputation of the company. Today, a large Herbalife distributor announced he was leaving and urged others to follow. Although no timings have been announced, Herbalife tells FBN that it is weighing a lawsuit.
Electron Capital Partners' flagship Electron Global Fund returned 5.1% in the first quarter of 2021, outperforming its benchmark, the MSCI World Utilities Index by 5.2%. Q1 2021 hedge fund letters, conferences and more According to a copy of the fund's first-quarter letter to investors, the average net exposure during the quarter was 43.0%. At the Read More
On the other side, Ackman has been calling on the FTC to shut down Herbalife, which he has called an illegal pyramid scheme. Ackman declined to comment on the potential lawsuit.