Herbalife Wins Dismissal of Investor Suit Tied to Ackman Claims
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Herbalife Ltd. won dismissal of a lawsuit by a shareholder who said he lost money after hedge-fund manager William Ackman accused the nutrition company of being a pyramid scheme.
Ackman’s allegations aren’t evidence that Herbalife committed fraud, so investor Abdul Awad and two pension funds that joined his suit can’t show that losses they suffered were caused by the company’s alleged misrepresentations, U.S. District Judge Dale S. Fischer in Los Angeles wrote in a March 16 ruling. Herbalife rose 10.5 percent at 2:09 p.m. in New York after having earlier traded as much as 14 percent higher.