Ackman called the company “a pyramid scheme,” according to a report at The Wall Street Journal. Later today he is expected to tell a conference audience his reasons for shorting Herbalife stock.
In May of this year, David Einhorn of hedge fund Greenlight Capital, sought answers to questions about the way distributors account for the products that Herbalife ships to them. Herbalife countered with a $428 million share buyback, but that didn’t stop the stock’s collapse. The Securities and Exchange Commission asked Herbalife for answers to the same questions in August.
Shares of Herbalife closed down 12.1% today at $37.34 after posting a new 52-week low of $35.95 earlier today. Shares are down another 0.9% in after-hours trading, at $37.01.
Paul Ausick
The Average American Is Losing Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.
Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.
But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.