Herbalife Shares Tumble After Disclosing FTC Probe

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March 12 (Bloomberg) -- Herbalife, the nutrition company that hedge fund manager Bill Ackman has accused of being a pyramid scheme, disclosed that the U.S. Federal Trade Commission has started a civil probe into its practices. Julie Hyman reports on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

Fund manager.

He has been pushing for regulators to investigate the company.

Herbalife confirms that the at ftc has opened an investigation into the company.

They welcomed the inquiry given the tremendous amount of misinformation in the market place.

They say they will fully cooperate with the ftc.

The assault on the company has been unrelenting.

Even as he switched most of his bets from the short sale on the stock to more of and options related that.

The store remains a long run at a high-profile.

Just yesterday, he presented what he said was evidence of the companies illegal activities in china where he says it is violating multiple marketing laws there.

He made similar allegations here in the nine states?

-- in the united states.

He has tried to engage with latino groups and other community organizers to try to find evidence of what he says is the pyramid scheme operating at the company.

He has not been successful so far.

The shares have rallied.

That is put him in the red on his short bets.

The stock is falling right now with the announcement of the investigation.

It is not clear how long this could take if the federal trade commission is looking into herbalife's activities.

When might it come out with some sort of resolution to this?

This is definitely not the end of this saga.

Just another development in it.

Julie hyman.

Thank you.

To our other top story, two people are dead and dozens more have been injured and several more remain unaccounted for following an explosion that leveled to new york city buildings in upper manhattan.

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