Herbalife Falls After Fund Manager Queries Disclosure
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Hedge-fund manager David Einhorn has questioned Herbalife Ltd., a maker of nutritional and weight loss supplements, about why it stopped providing information about distributors in filings.
The shares had their biggest two-day drop since they began trading in December 2004 after Einhorn, chairman of Greenlight Capital Re Ltd., questioned executives on a conference call with analysts and investors yesterday. Herbalife, which sells vitamins, shake mixes and skin gels through a marketing network of independent distributors in 81 countries, had gained 36 percent this year before May 1.