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Health Care Investment Law & Regulation

Ackman attacks Herbalife China business

Hedge fund Pershing Square Capital Management, which is betting against nutrition and weight loss company Herbalife (HLF.NYSE), said it would unveil details about the company’s violations of laws in China on Tuesday, Reuters reported. Activist investor William Ackman, the hedge fund’s CEO, has called on regulators to investigate Herbalife’s distribution model, which he calls a pyramid scheme. Herbalife has vehemently denied the charge. Ackman has taken a US$1 billion short position against Herbalife, betting that the company’s share price will eventually fall to zero.

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