Ackman Says Investigation Found Herbalife Violates Chinese Laws
This article is for subscribers only.
Billionaire Bill Ackman, renewing his attack on the nutrition and weight-loss company Herbalife Ltd., said its investigation into the business’s Chinese operations found that they violate direct-selling laws.
Ackman’s firm, Pershing Square Capital Management LP, hired OTG Research to evaluate Herbalife within China, Ackman said today during a presentation. Pershing found that Herbalife pays people illegally based on the number of recruits they amass. The company’s “hourly consulting pay” is key to showing that it violated laws, Pershing said, citing the OTG probe.