Herbalife Ends Dividend To Focus On Buybacks

Apr 29 2014 | 12:44pm ET

Herbalife is taking steps to rain on Pershing Square Capital Management’s red-carpet parade this week.

The nutritional supplements company, which the William Ackman-led hedge fund says is a pyramid scheme, announced yesterday that it would suspend its annual dividend and use the money to aggressively buy back stock. The move comes days before Ackman plans to premiere a documentary about the company, featuring former distributors who allege they were defrauded by Los Angeles-based Herbalife.

Herbalife also said its adjusted net income hit a record in the first quarter. But it said it took a major loss due to Venezuela’s currency devaluation, cutting its first-quarter profit by 37%.

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