Herbalife Company Statement Regarding Ackman Allegations
LOS ANGELES--(BUSINESS WIRE)--
Herbalife Chairman and CEO Michael O. Johnson responded today to
questions regarding hedge fund manager William Ackman's claims about
Herbalife by saying, "The allegation that Herbalife is a pyramid scheme
is bogus. Make no mistake: Today's announcement isn't about Herbalife's
business model. It's about Bill Ackman's business model."
Here's what we know:
An extraordinary number of puts on our stock are due to expire
this Friday. We previously learned this activity was pegged to some
kind of "significant event."
Mr. Ackman suddenly announced today that he will make a presentation
on Herbalife on Thursday, the day before the puts expire.
Our CFO this morning asked Mr. Ackman to allow us to participate in
his presentation. Mr. Ackman declined.
We have been informed that Mr. Ackman has shorted our stock for the
past 7 to 9 months.
Our stock dropped almost 15 percent today following Mr. Ackman's
We urge the SEC to investigate these series of events to protect the
rights of investors. This appears to be yet another attempt to illegally
manipulate the market by overzealous short-sellers.
We've been in business for 32 years. We have millions of customers
worldwide. We don't pay to recruit distributors. And just today, we
announced a $100 million Herbalife manufacturing facility in North
Carolina that will employ 500 people.
We have one of the greatest health nutrition product lines in the world
and a direct-selling business opportunity for part-time or full-time
We are incredibly proud of this company.
About Herbalife Ltd.
Herbalife Ltd. (NYSE:HLF) is a global nutrition company that sells
weight-management, nutrition, and personal care products intended to
support a healthy lifestyle. Herbalife products are sold in more than 80
countries to and through a network of independent distributors. The
company supports the Herbalife Family Foundation and its Casa Herbalife
program to help bring good nutrition to children. Herbalife's website
contains information about Herbalife, including financial and other
information for investors at http://ir.Herbalife.com.
The company encourages investors to visit its website from time to time,
as information is updated and new information is posted.
SVP, Worldwide Corp. Comm.
VP, Investor Relations
Source: Herbalife Ltd.
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