Tuesday, 30 September 2014
Last updated 5 hours ago
Oct 17 2013 | 1:57pm ET
A lawsuit echoing William Ackman's allegation against nutritional supplements company Herbalife has survived the company's dismissal bid.
A federal judge in Los Angeles said that the plaintiff, a former Herbalife distributor, had sufficiently argued his allegation to allow the claim to move forward. Dana Bostick argues, like the Pershing Square Capital Management founder, the Herbalife is a pyramid scheme, and rewards distributors more for recruiting other distributors than for actual sales.
Bostick further alleges that those sales were made impossible by the larger discount given to distributors higher up the chain.
Herbalife in May asked U.S. District Judge Beverly Reid O'Connell to toss the suit, arguing that Bostick "gave up on his distributorship once he discovered that he was unable to resell the Herbalife products he purchased by merely relying on a Web site to his work for him," and that, "rather than return the purchased products to Herbalife for a full refund, as he concedes he could have done, Bostick sued."
Ackman is December announced a $1 billion short bet against Herbalife, leading to a public feud with Carl Icahn, who backs the company. To date, Icahn has had the better of the battle, with Pershing Square suffering big losses as Heralife shares have surged. Ackman recently restructured his short bet to cut some of its risk.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...