Minority Groups Push Herbalife Probe

Oct 21 2013 | 11:13am ET

Pershing Square Capital Management has a new ally in its battle against nutritional supplements company Herbalife.

A group of black and Hispanic leaders has asked California officials to launch an investigation into the company, saying its "deceptive marketing and predatory business practices… target vulnerable minority communities."

The group, led by the League of United Latin American Citizens, wants California Attorney General Kamala Harris and Santa Cruz County District Attorney Bob Lee to launch an investigation into the company, which Pershing Square's William Ackman alleges is a pyramid scheme.

Ackman has a roughly $1 billion short bet against the company, which is based in Los Angeles.

The anti-Herbalife coalition has set up a toll-free telephone line to "allow victims to report their experiences."

The move by the minority groups comes after a federal judge in Los Angeles refused to dismiss a lawsuit against Herbalife filed by a former distributor, whose allegations echo those of Ackman.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of