Herbalife Ltd. (NYSE:HLF)’s stock was down by 11% on Monday after hedge fund manager, Bill Ackman, made claims that the company was a pure scam engaged in illegal activities and that it was only a matter of time before the company collapses. Pershing Square’s manager Bill Ackman told CNBC explained why Herbalife was a large fraud in terms of scale, involving a number of countries.
“You are going to learn why Herbalife is going to collapse. And that is a pretty strong statement, but this is the largest fraud, public fraud in terms of scale, of countries involved, harm to people, but we are going to show you with particularity,” said Bill Ackman.
Ackman is looking forward to revealing the wrongs about the nutrition club that Herbalife Ltd. (NYSE:HLF) normally runs claiming that what the company says about the clubs is not what actually goes down there.
The talk will be held at the AXA Equitable center Manhattan, where Ackman has said they will present hundreds of hours of recorded video and audio as well as internal documents handed over by concerned employees at Herbalife Ltd. (NYSE:HLF). Ackman has already rubbished reports that the last time they held a live report about Herbalife on December 20, 2012, they did not invite Herbalife management team to defend itself; this time around, all the management team at Herbalife has been invited for the live event.
“The last time we did a live presentation in person was on December 20 of 2012, and Michael Johnson said that we would not allow him to come to the presentation that is false. I want to make it clear that Michael Johnson and his senior management team is welcome to come to the presentation,” said Mr. Ackman.
Ackman has already reiterated that they will go as far as allowing Herbalife to answer any questions during the presentation. The billionaire has already alleged that this will be the largest presentation he has made in his career awaiting to see the impact it will have on Herbalife Ltd. (NYSE:HLF).
Herbalife Ltd. (NYSE:HLF) has also come out fighting claiming that Ackman is the worst of Wall Street with the latter maintaining he has not paid anyone to spread bad information about Herbalife.