Monday, 27 June 2016
Last updated 2 days ago
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%.