Herbalife Ltd. Unveils A New Website To Counter Pyramid Scheme Claims

By Mani
Updated on

Herbalife Ltd. (NYSE:HLF)’s new website counters claims made by billionaire investor William Ackman that it is running an illegal pyramid scheme.

The public awareness website highlights the positive impact Herbalife Ltd. (NYSE:HLF) has had on the lives of the company’s members and customers.

Latest salvo in battle between Ackman and Icahn

Herbalife Ltd. (NYSE:HLF) continues to be a battleground for investor Carl Icahn and billionaire investor Bill Ackman. Earlier this week, it was reported Carl Icahn may go on the offensive in court against Pershing Square shareholders and Ackman, accusing them of spreading falsehoods about the company. Interestingly, Ackman’s public short of Herbalife dragged the company into the spotlight in late 2012.

Carl Icahn’s comments came earlier this week when Herbalife Ltd. (NYSE:HLF) informed shareholders that it was nominating three more of Icahn’s designees to join its board of directors.

In its regulatory filing Monday, Herbalife stated that it will nominate Hunter C. Gary, Jesse A. Lynn and James L. Nelson—all of whom are Icahn’s designees. Investors welcomed the news the company will increase its reliance on Icahn for help.

The weight loss and nutrition company’s new website represents the latest salvo in a high-stakes battle between Ackman and investor Carl Icahn, who has taken a major stake in Herbalife and will soon control five seats on its 13-member board of directors.

New website

Herbalife Ltd. (NYSE:HLF)’s new site, iamherbalife.com, calls Ackman’s claims misleading and features links to dozens of testimonials from users touting the company’s products and how healthy they are. The website mentions that there is no guarantee of success as a distributor, in contrast with some of its earlier promotional videos showing distributors riding snowmobiles and horses, talking about their lavish lifestyles and how others can be like them.

The website also highlights the motivations behind the allegations made by Pershing Square and the extraordinary lengths they have gone to in order to achieve their goal of driving down Herbalife Ltd. (NYSE:HLF)’s stock price for financial gain.

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