Ackman Investigation Finds Herbalife Violates China Laws
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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, he said yesterday during a more than two-hour webcast. Pershing said 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.