Bill Ackman: Herbalife Not Exonerated by Judge’s Ruling

Mar 20 2015 | 12:40pm ET

Pershing Square Capital boss Bill Ackman said that the recent dismissal of a shareholder lawsuit by a federal judge does not "exonerate or bless" the firm and its practices."

In a statement released today, Pershing square believes that evidence and investigations will still deem Herbalife as a Pyramid scheme, as Ackman has long argued. The firm said, ultimately, it "will be that Herbalife will be shut down or will be required to modify its deceptive practices so substantially that the company will not be able to survive."

Ackman’s fund has maintained a $1 billion position against the company since December 2012. In its statement, the hedge fund said that the federal judge’s decision, delivered March 16, still failed to address whether the company’s marketing practices fit the definition of a pyramid scheme.

Shares of Herbalife have risen in recent trading sessions, with much speculation that Pershing Square has begun to cover its short position.

Meanwhile, Herbalife representatives said this week that the judge’s dismissal was welcome news.

"We are confident in the strong fundamentals of our business model and remain committed to helping people and communities improve their nutrition," the company said in a statement. 

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