– Herbalife Tumbles 14% On News Criminal Probe Has Been Launched Into Company (Zerohedge, April 11, 2014):
The Herbalife drama – perhaps the biggest billionaire pissing contest of 2013 – just got excting again, following FT news that a criminal probe has been launched into Herbalife. “The US Department of Justice and the Federal Bureau of Investigation are investigating Herbalife, the multi-level marketing company that hedge fund manager Bill Ackman has alleged is a pyramid scheme, according to people familiar with the matter. The criminal investigation by the FBI and US attorney’s office in Manhattan raises the stakes for Herbalife, which is already facing civil inquiries from multiple government agencies that are looking into the Los Angeles-based company and its associated network of independent distributors.”
One can’t help but wonder if those “people familiar” have a material stake in Pershing Square, which as is widely known has an extensive short and put position in HLF shares, which as expected tumbled by 14% on the news.