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.

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

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