Thursday, 28 August 2014
Last updated 26 min ago
Apr 15 2014 | 12:23pm ET
Things have gone from bad to worse at Herbalife, the nutritional supplements company targeted by hedge fund Pershing Square Capital Management.
Already under investigation by the Federal Trade Commission, Herbalife now faces three other probes and a shareholder lawsuit echoing Pershing Square's allegations that the company is a pyramid scheme.
The Federal Bureau of Investigation has opened a probe into Herbalife, contacting former distributors and reviewing documents obtained from them. The investigation is focused on Herbalife's business practices, including its recruitment of new distributors, the Financial Times reports. Manhattan U.S. Attorney Preet Bharara is also looking into the Los Angeles-based company.
Herbalife also faces scrutiny from New York Attorney General Eric Schneiderman, after two would-be whistleblowers offered the official sworn testimony, the New York Post reports.
Herbalife has steadfastly denied Perhing Square's allegations, made in late 2012 after the hedge fund opened a $1 billion short bet against the company. The charges leveled by Ackman fell on mostly deaf ears for more than a year before the FTC opened its probe, sending Herbalife shares down sharply.
Herbalife, already facing a potential class-action lawsuit from a former distributor, now faces one from a shareholder. Abdul Awad yesterday sued the company, alleging that it defrauded investors by failing to disclose that it is a pyramid scheme.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...