Bill Ackman To Release A Documentary On Herbalife Ltd. (HLF) Victims

CREW Herbalife Ltd. HLF Bill Ackman speaking

Herbalife Ltd. (NYSE:HLF) is going to face yet another big attack from billionaire hedge fund manager Bill Ackman later this week.Short interest in the stock has grown to more than 13% of the float in the past few weeks as federal and state authorities opened investigations into the company’s business practices. Herbalife shares have declined more than 25% this year.

Ackman’s another attempt to prove that Herbalife is a pyramid scheme

Bill Ackman has decided to publicly showcase a documentary about Herbalife Ltd. (NYSE:HLF)’s former distributors who say that the company defrauded them. Ackman has shorted Herbalife stock since May 1, 2012. His hedge fund Pershing Square Capital Management is betting $1 billion that the stock would collapse because Herbalife is a pyramid scheme. However, shares of the nutritional supplement maker soared more than 165% in 2013 as Dan Loeb and Carl Icahn took bullish positions in the company.

The documentary will be Ackman’s latest evidence that the Cayman Islands-based company is a pyramid scheme, reports The New York Post. Pershing Square has planned an event in the New York City this Friday to showcase the documentary. The hedge fund has invited members of the community, government, press and consumer organizations to attend the showing. Ackman didn’t reveal the exact time and place to prevent any interference at the event.

The documentary will be followed by a live panel discussion with former Herbalife Ltd. (NYSE:HLF) distributors featured in the film. The discussion will be moderated by Connie Chung, the former CBS News anchor. Chung said she would not accept payments for the gig. Pershing Square said it hasn’t compensated people in the documentary beyond expenses for people coming to New York.

Herbalife launches attack on Ackman

Meanwhile, Herbalife Ltd. (NYSE:HLF) attacked Ackman last week after the hedge fund manager acknowledged that he agreed to pay a former Herbalife executive to become a whistleblower against the company. According to ABC News, Ackman had offered to pay $3.6 million to a former employee of the nutritional supplement maker over the next 10 years for when he lost his job after revealing information about the company to the media and federal investigators.

Herbalife Ltd. (NYSE:HLF) alleged that these payments were part of Ackman’s larger effort to offer secret payments to organizations and people to bring misleading and false charges against the company.

Herbalife Ltd. (NYSE:HLF) shares soared 2.01% to $58.99 in pre-market trading Monday.

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About the Author

Vikas Shukla
Vikas Shukla has a strong interest in business, finance, and technology. He writes regularly on these topics. - He can be contacted by email at vshukla@valuewalk.com or on Twitter @VikShukla10

44 Comments on "Bill Ackman To Release A Documentary On Herbalife Ltd. (HLF) Victims"

  1. I think I have managed to uncovered the scam. Here is how it works…

    I am told you pay $60 to $100 bucks to become a member. costco costs either $50 or $110 for their membership If you want to buy at wholesale. If you purchase that member pack I am told the guy selling it to you doesn’t make a dime. He likes working for free… NOW THAT IS a rip off. I like to work for money. If not you can pay more to buy at retail. Unlike costco you are given an option to pay more. Costco just forces you to buy the membership and pay less like it or not those jerks…. Time to shut them down too.

    Once you become a member with Herbalife LOOK OUT….

    * no minimum purchase requirements and no requirement to purchase any sales or business tools to start up or succeed;

    * low start-up costs and 100% 90-day money back guarantee for cost of start-up pack;

    * 100% money-back guarantee, plus shipping costs, for all unsold products purchased within prior 12 months

    I see the light. So you are not forced to by anything and they give you a 25% discount if you do… WHAT A RIP OFF! Total scam from the start. Then there is nothing else you have to buy and if you don’t like it you get your money back taking them even deeper into SCAMMER territory! Gosh tex2 I’m with you… let’s shut this deal down.

    Here is some more stuff i uncovered check this out…

    A can of formula #1 which is there meal replacement costs about $43 and there are 30 meals in it. This is price gauging isn’t it? That’s about $1.43 a meal. Who pays $1.43 for a meal now days? Seriously? Tex2 you are dialed in… This is a TOTAL SCAM…

    Oh wait there is more…. that was retail so if you got suckered into becoming a member for about the price of a tank of gas and remember the guy that sold that to you didn’t earn any money doing it… well…. now you get 25% off so that same product now costs about $33 shame on these sneaky MLM freaks for lowering the price to $1.10 a meal… Seriously… shut them down already.

    Oh and if someone wanted to “God forbid” just buy as a customer, I am told I could actually earn the difference between the retail and wholesale costs…. RUN…. Enough is enough already… This scam has got to be terminated. Come on people….

    You got a hedge fund manager who is losing his you know what
    he is desperately trying to do anything he can to shut the company down so he can earn his billion dollars
    He puts out report after report of what a scam this company is and he gets the free pass???

    I have read over and over about a whistle blower and not one word about what he has supposedly blown the whistle on? What was the company doing that was so nasty? Suspicious isn’t it? I have read about what a pyramid this is because the have so few customers yet costco and sams have NO customers they are 100% Wholesale. Herbalife actually has customers which tex2 has admitted to and HE is by the THE AUTHORITY of this issue. They don’t make money when they sign you up.

    What is the scam? Im just trying to figure it out. Maybe there were some bad distributors just like there are bad athletes in the sports world. But does that make the owners of the team liable? Seriously someone explain this too me?

  2. Interesting article…

    Connie Chung, an independent journalist who was supposed to moderate the panel discussion, has withdrawn. The journalist’s last minute withdrawal could be an indication of the fact that she believes that the documentary is designed to support misleading propaganda.

    It is likely that the panel discussion will be biased, as Robert Fitzpatrick, who is named as the replacement for Connie Chung, is well-known as an industry critic. Fitzpatrick is a consultant to Mr. Ackman himself and to Barry Minkow, who is a three-time convicted felon and perpetrator of fraud. Fitzpatrick’s association with Minkow lead many to question his morality, which has already started to cast a negative light on the authenticity of the documentary.

  3. The reason I parrot your words is to show how empty and meaningless they are, in the intellectual meaning of the term. Just like a prostitute gives empty sex, you give empty posts, you slut. LOL

    By the way, does Mark know you are spending so much time hanging around somebody like me, prostituting your time with me on blogs, you slut? LOL

  4. No doubt about that! LOL

    Remember folks, it was a DUDE that is scared of making a simple phone call. LOL

    In my book, the word for that begins with a “p” and ends in an “ussy.” LOL

  5. Mark and Susan Hill | May 4, 2014, 10:34 am at 10:34 am |

    Mission accomplished.

  6. I could have sworn the feminine-like bickering came from Susan the slut.

    My bad, now I feel bad for Susan. LOL

    Goodbye Mark the male whore. LOL

    See, I told you the k-word works! LOL

  7. If you don’t like MLMs, then you shouldn’t degrade and go off-topic with someone who agrees with you, except that you are an intellectual slut, as described below. LOL

    The world we live in improves when people speak up about the abuses, instead of slutting around criticizing others for being willing to bring attention to the abuses. LOL

    But that’s what sluts do, right Susan? LOL

    I got on with my life a LONG time ago, I’m bringing attention to MLM scams so others don’t get scammed as I was, you ignorant slut. LOL

  8. Mark and Susan Hill | May 4, 2014, 10:04 am at 10:04 am |

    Text2,
    My name is Mark idiot. Goodbye tex2. You have gone into the gutters with this and I am finished communicating with you. Enjoy your bitter wasted life.

  9. The reason I parrot your words is to show how empty and meaningless they are, in the intellectual meaning of the term. Just like a prostitute gives empty sex, you give empty posts, you slut. LOL

    By the way, does Mark know you are spending so much time hanging around somebody like me, prostituting your time with me on blogs, you slut? LOL

  10. Mark and Susan Hill | May 4, 2014, 9:50 am at 9:50 am |

    One more thing text2,
    You should consider the fact that I do not like MLM’s methods on
    selling products. I have been approached to “sign up” for a span of over forty years. I was approached by Amway in 1971 and I thought back then that their sales approach was dishonest and borderline mind controlling. But this doesn’t mean that what they are doing is against the law. You can experience the same deceptive practices when you try and buy a car through an auto dealer. You can witness the same sales deceptive tactics while watching commercials on TV. Welcome to
    the world that we live in. I was taught to think for myself and it has served me well. Emotional baggage is thinking for you tex2. Stop being an immature whiner and stand up like a mature person and get on with your life.

  11. Mark and Susan Hill | May 4, 2014, 9:40 am at 9:40 am |

    Polly want a cracker?

  12. It’s not an explanation or an excuse, it’s a fact. Go read the blog you referenced. The proof is there. QED LOL

    Don’t you see that you lack any culpability to reality? You find a slippery slope to slide out of facing the truth using any words that conveniently come to your mind. You need deep mental therapy to correct this disease that has control of you. LOL

  13. Mark and Susan Hill | May 4, 2014, 9:24 am at 9:24 am |

    So your explanation (excuse) for calling a person a kike was to shut up an idiot? Don’t you see that you lack any culpability to reality. You find a slippery slope to slide out of facing the truth using any words that conveniently come to your mind. You need deep mental therapy to correct this disease that has control of you.

  14. Susan, you will find all sorts of factual posts from me. Amway is discredited by the facts I post about them. LOL

    The kike comment to a singular individual is fully explained on the blog it appears on. It is one of my techniques for shutting up idiots. Guess what, it worked! LOL

    I don’t have to explain anything, except how the Amway, Herbalife, and other MLM scams work to separate people from their money, using illegal pyramids and RICO fraud tool scams. Read about it by googling “stop the amway tool scam wordpress” LOL

    You’ve never talked to me, so you don’t have a CLUE about my “emotional state,” you goon. LOL

    You haven’t come close to the truth or stinging me in any manner, Susan. LOL

  15. Mark and Susan Hill | May 4, 2014, 9:04 am at 9:04 am |

    Polly want a cracker?

  16. Mark and Susan Hill | May 4, 2014, 8:55 am at 8:55 am |

    If you do a Google search on tex2 Amway, you will find all sorts of bizarre blog post. People like me, question his psychological
    obsession about his efforts to discredit Amway. You will also find times when text2 inappropriately calls Jews Kikes. Isn’t this all true tex2? Can you explain why things like this trail you? Besides being emotionally wacko, what is it that you specifically have against Jewish people? Can you answer that for all to see what your character is made of? The truth stings a bit text2, doesn’t it? I sure hope that I didn’t misspell any words here because you will only focus on that to escape the truth that is before you.

  17. Keep it up Susan for all can see the truth about the facts I provide and what a coward you are. It has been so easy to lead you along to bring out what you are all about right in front of everyone. School? It sounds like you are emotionally stuck in the first grade. You are a child in an adult body desperately trying to act like an adult but you can’t. All you can do is default back to the reality of who you are. Keep on going on with it Susan. You are the proof of what you are all about. I don’t need to say anything except just lead you along and get you to respond back to me. Please keep on providing everyone with more proof about what you are all about. LOL

    As for me, everyone else reading this should visit my blog to learn about Herbalife, Amway, and other MLM scams by googling “stop the amway tool scam wordpress”

  18. Mark and Susan Hill | May 4, 2014, 3:03 am at 3:03 am |

    Tex2
    Keep it up text2 for all can see the truth about what an immature fool you are. It has been so easy to lead you along to bring out what you are all about right in front of everyone. School? It sounds like you are emotionally stuck in the third grade. You are a child in an adult body desperately trying to act like an adult but you can’t. All you can do is default back to the reality of who you are. Keep on going on with it text2. You are the proof of what you are all about. I don’t need to say anything except just lead you along and get you to respond back to me. Please keep on providing everyone with more proof about what you are all about. LOL

  19. The LOLs are because you’re a joke, and not the funny kind. LOL

    The word is “reveal.” LOL

    And no, you haven’t come close to touching even a shallow nerve. LOL

    The word is “replies.” LOL

    And there is no apostrophe, it’s not a possessive word. LOL

    It’s okay. If you talk anything like you write, I probably wouldn’t understand a word. LOL

    Besides, I know the real reason is you know I would school you and make you feel like the idiot you are. LOL

  20. Mark and Susan Hill | May 3, 2014, 9:28 pm at 9:28 pm |

    Wow tex2….Did I touch a deep nerve that caused you to come out of the closet and revile how foolish you are? Besides what is evident, what’s with all the LOL that you say after every statement? Is it some kind of a nervous tweak you experience to cover up for how foolish you are? Have you ever read some of your reply’s? Why in the world would I want to talk to you on the phone? I am sorry, but I choose who I wish to talk to. You are not one of them for glaring reasons.

  21. My reply is based on FACTS. You’re too stupid to understand the difference between facts and fantasy. LOL

    There have been millions of others who also lost time and money to Amway and other MLM scams. Most lost less, some lost more. The amount I lost is immaterial. LOL

    I learned plenty by listening to liars, and YOU remind me of those liars. LOL

    I don’t feel any shame or humiliation, however I will do everything in my power to ensure others aren’t scammed. LOL

    You are too scared to talk about this on the phone, aren’t you? LOL

  22. Mark and Susan Hill | May 3, 2014, 8:09 pm at 8:09 pm |

    Your reply back is all according to YOUR MIND tex2. Consider this; This is the SAME MIND that lost over $100,000 believing in its self-imposed delusions while being an Amway distributor. You were delusional then and you are delusional now. You have not learned one thing by this mistake in life. Instead you pretend that you are on some kind of self righteous campaign while in reality covering for the shame and humiliation that you feel. Isn’t this true tex2?

  23. A typo isn’t using an entirely different word – what you did was make (another) mistake. LOL

    Everything else is wrong, too. LOL

    I am educating others that both Amway and Herbalife are scams, and they are amazingly similar scams. LOL

    I don’t think anyone should take FULL RESPONSIBILITY for being lied to. LOL

    I’m not angry at all, I’m merely educating others – perhaps it is YOU who is angry. LOL

    Let’s wait until Herbalife is exonerated by the SEC, FTC, FBI, DOJ, and at least 2 AGs first. LOL

    Do you have a problem with a hedge fund manager making money? LOL

    Herbalife clearly is breaking the pyramid and RICO laws. LOL

    Did you watch the documentary and Q&A session? LOL

  24. Mark and Susan Hill | May 3, 2014, 4:27 pm at 4:27 pm |

    Sorry for the typo mistake. It was Amway that YOU sold out to. Everything else I wrote is 100% correct. You are venting at Herbalife as if it is Amway.

  25. I was never in Herbalife. LOL

  26. Mark and Susan Hill | May 3, 2014, 2:28 pm at 2:28 pm |

    tex2 is hedging from taking FULL RESPONSIBILTY of his own blunders in life through venting his culpability out on Herbalife. He lost over $100,000 being a Herbalife distributor and boy is he an angry man. How could be blame these large amount of losses on Herbalife? Did Herbalife really lead him along or was it his own greed and self-deception that caused this to happen? He claims he has taken responsibility for his mistakes but it is obvious that he is hedging from taking FULL RESPONSIBILTY for his actions. What will tex2 say when Herbalife gets exonerated from these recent accusations that a hedge fund manager is trying to make money from? My guess is that he will still carry on with his rants that lack any bite of law. Herbalife will be cleared of all of these accusations but will tex2 stop from his?

  27. below

  28. So Costco and Sam’s Club are both the ULTIMATE scammers. They have 100% members only buying from them. They force me to buy a membership and then sell their products to me at a discount those fillthy scammers. I knew I should have cancelled my memberships.

    Tex2 you seem to have a hard time separating Herbalife International the manufacture from it’s distributors who sign on to market the products. So when sports teams recruit players should they too be liable for the players actions? With your ridiculous analogy perhaps you agree that if someone for the LA Lakers or any other sports team did something illegal that the owners of the team should be help liable because the players where just helpless victims. That thought process would rate right up there with the no one is responsible for their own actions group. Were all just poor helpless victims. Everyone else is responsible except us. This is as flat out crazy to me as your other blabber. Looks like Connie Chung suddenly saw the forest through the trees and backed out of being any part of the bosses PR stunt today. Guess when she saw both sides she decided to avoid getting involved on Ackmans side. Interesting to say the least. Which like all his other stunts fell flat today.

    The products apparently work very well based on IamHerblaife.com and the amount of “customers” coming out in support of them. I saw one figure that they now have nearly 100,000 nutrition clubs around the world loaded with customers that you refuse to believe exist simply because they charge a membership fee to some of them to get a discount? This company will likely be found to have more “customers” than any other MLM in the industry. Literally! But then again since costco charges me a membership fee to shop with them they too have zero customers and must be a HUGE illegal scam. Those scammers…

    There are a lot of big name professional athletes coming out in support of the product benefits with amazing before and after photos as well. Results look pretty impressive to me. In addition is see some big names in sports are coming out about how great the products are. This is not helping your miss guided arguments in any way when these nasty dirty filthy scam supporting deceving little papers like the USATODAY write up real life results of “customers” ironically smashing your imaginary theory to pieces. How dare they reveal the truth.

    http://www.usatoday.com/story/sports/nfl/vikings/2014/04/30/greg-jennings-minnesota-vikings/8533921

    You are proving to everyone just how delusional you really are… But hey… keep swinging man….

  29. Global Joke, that is a very fitting name – certainly the part of the globe I occupy thinks you’re a joke. I am neither invested or work with Ackman.

    You need to read my blog for the details, but here’s the short version:

    The distribution method results in mainly internal consumption, that is an illegal pyramid, according to previous court cases, as well as the FTC and SEC web sites. I never claimed there are zero customers, I said there are very few, so stop lying about what I said.

    There is also the recently ended practice of “lead-generation” systems. Or at least Herbalife CLAIMS they have ended them. But just like a long-term bank robber who is caught, then claims to stop robbing banks, what is the punishment for the past thefts? My claims are dead on accurate, and outright true. For example for you to claim I said they have ZERO customers is an blatant lie.

    There are also well documented examples of illegal medical claims, curing cancer, etc. Any other questions?

  30. Tex2 is either invested with Ackman OR works for him. You go tex2 you go…. You make no sense otherwise

  31. There’s a LOT on my blog, but the short story is both have little retail sales (illegal pyramid), both have under the table “tool” money the companies are fully aware of (RICO fraud – technically, HLF shut theirs down last year, we don’t know if it is enforced, and they were doing it for decades, so it’s a lot like they were robbing banks, and then stopped, expecting everything should now be okay), and both make illegal medical claims (HLF more than Amway). Questions?

  32. Why not? Bernie Madoff’s was larger than that! The “good things” Herbalife does is to buy positive PR. The regulators will ignore the PR stunts. Bernie Madoff was cut and dry, so was WorldCom, Adelphia, Enron, etc., but they cooked the books, just like Herbalife, Amway, etc.

  33. You’re saying a lot without saying anything material.

  34. Really? A $5-6 billion scam? HIGHLY doubtful. I’m not saying they couldn’t have crossed some lines while doing business, but HLF wouldn’t have gotten that big if it were all as cut and dried as you make it out to be. But Ackman won’t say anything about the good things they have done because that would foil his plan.

  35. If they were the same, they would be the same thing. It’s called an analogy, and these 2 companies fit hand in glove.

  36. I’m glad he can make money by shutting down a scam. I wish Amway wasn’t privately held. The billions he intends to make is for his investors, he has pledged to give any personal gains to charity. By the information he has put together, he and his team have worked VERY hard to identify the illegal pyramid, RICO fraud, and illegal medical claims.

  37. Ackman is trying to make money. Billions. You make it sound like he’s doing this out of the kindness of his heart. That’s not how hedge fund managers work, assuming they even work at all.

  38. Your opinion. We’ll see whether the facts bear out.

  39. Herbalife is a scam, just like Amway is a scam. You need to do some more reading.

  40. Ackman is bringing attention to an illegal pyramid, illegal medical claims, and RICO fraud. Google “stop the amway tool scam wordpress” for the details, as Herbalife and Amway operate very similar.

  41. Very similar, but not the same. In other words, not congruent. Thus, not guilty by association.

  42. Herbalife is a great company, which has helped millions of people in the world, I know that as a product user. On the other hand Ackman just tries to manipulate people for his own selfish reasons to try to profit from his herbalife short sellings. Ackman will lose and get his lesson, he is nothing but a little rich kid who got lucky with stocks, he thought he knows something, and now he is going to get his ass kicked as he should. Herbalife stock will keep going up and Herbalife over 34 year old company has hundreds of millions of backers around the world, a multi billion dollar company built with lot of hard work and integrity to help the nutritional habits of the world.

  43. What exactly did this so called whistle blower blow the whistle on? What’s the horrible knowledge he had that he divolged regarding Herbalife? I can’t find it anywhere???? Little strange don’t you think? Amway and Herbalife are not scams. You don’t have do buy or do anything if you don’t want. But Ackman is trying to bring down this company with lies and rumors why does he get a pass? How about we Investigate this guy? I know a lot of people make a living in these companies and work very hard to do it. Harder than most of you bad mouthing it and jumping on the SCAM wagon.

    Image you go to college, pay tuition and don’t show up for class, you graduate and can’t get a job. Was college a scam? If you want to succeed at anything it’s going to take 10 times the work you thought it would and many people just aren’t willing to work. So they jump on the scam wagon maybe to justify their failures???

  44. Herbalife operates very similar to Amway, the world’s largest MLM scam. Google “stop the amway tool scam wordpress”

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