Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Herbalife Ltd. (HLF): Two Men Charged With Insider Trading By SEC

Security and Exchange Commission has charged two men with insider trading in Herbalife Ltd. (NYSE:HLF) shares, according to a CNBC report by Scott Wapner.  One of those charged is a former roommate of a former analyst at Bill Ackman’s Pershing Square Capital Management. It’s worth noticing that neither Bill Ackman nor the analyst have been charged by SEC of wrongdoing.

Herbalife Ltd. (NYSE:HLF)

In 2012, a day before Bill Ackman announced his big short position in Herbalife Ltd. (NYSE:HLF) and made a presentation about his views on the company, the analyst told a roommate about Ackman’s plans at Herbalife Ltd. (NYSE:HLF), which in turn communicated the information to a friend. The roommate’s friend has bought put options in the aftermath and has scored gains of $47.000 on the trade, as the stock experienced increased volatility on the news and tumbled over 30% over the next days. SEC has ordered the individual to pay a civil penalty worth $47.000.

Herbalife Ltd. (NYSE:HLF) has been under intense scrutiny in the last two years from hedge fund Pershing Square Capital Management, which has amassed a big short position, alleging the company is running a Ponzi scheme. Bill Ackman, the fund’s CEO has made several presentations trying to convince investors that Herbalife Ltd. (NYSE:HLF) is a fraud, but failed. His last presentation was in fact a boon for the company’s stock, as it increased by 15% as he spoke.

Many investors have lined up against Ackman’s vision by building long positions in the stock. Notable long investors in Herbalife Ltd. (NYSE:HLF) include Carl Icahn and George Soros. Carl Icahn has a stake of 17 million shares worth slightly more than $1 billion and George Soros owns 4.7 million shares that have a market value of more than $305 million. Bill Ackman has a short position of 20 million shares.

Herbalife Ltd. (NYSE:HLF) stock is down 45% year-to-date, as its earnings results have disappointed lately.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.