Companies and Brands

William Ackman’s Secret Weapon: The FTC

CNBC Ackman Icahn
CNBC
The Federal Trade Commission (FTC) today launched an investigation in what it believes to be an illegal pyramid scheme. The company involved is Fortune Hi-Tech Marketing, a multi-level marketing company that has been in the FTC’s sights for some time now.

When the FTC announced the pending press conference without naming the object of its action, shares of Herbalife Ltd. (NYSE: HLF) and Nu Skin Enterprises Inc. (NYSE: NUS) dipped about 8% and 6%, respectively. Both Herbalife and Nu Skin have both been charged in the press — and in Herbalife’s case, high-profile hedge fund manager William Ackman — with being pyramid schemes.

The interesting thing about today’s FTC announcement is the collateral damage to Herbalife and Nu Skin. Imagine what an FTC decision to launch an investigation into Herbalife would mean to Ackman and his short position in the company? And Ackman doesn’t even have to care whether Herbalife is a pyramid scheme or not. Must be nice to have a bazooka in your pocket.

Take Charge of Your Retirement: Find the Right Financial Advisor For You in Minutes (Sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding professional guidance—and we’ve made it easier than ever for you to connect with the right financial advisor for your unique needs.

Here’s how it works: 

1️ Answer a Few Simple Questions

Tell us a bit about your goals and preferences—it only takes a few minutes!

2️ Get Your Top Advisor Matches

This tool matches you with qualified advisors who specialize in helping people like you achieve financial success.

3️ Choose Your Best Fit

Review their profiles, schedule an introductory meeting, and select the advisor who feels right for you.

Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.