A Los Angeles based court dismissed a lawsuit against Herbalife Ltd. (NYSE:HLF) recently, but things didn’t turn out favorably, at least not according to Perishing Square. As per the reports, Perishing Square stated in a statement that dismissal of the lawsuit wouldn’t absolve Herbalife.
Insights On The Matter:
The statement of Perishing Square came out on Friday for the first time. It claimed that the lawsuit dismissal was neither a boon nor an absolve for the company and its business practices. Herbalife tried to mislead everyone including its customers, stakeholders, court and regulatory authorities. Even though its suggestions were confusing and misleading, but still the decision of the court didn’t address if the company was an illegal pyramid scheme. The court’s decision had to be in one direction, but unfortunately it didn’t.
Court neither gave any negative comments nor absolves or bless the business practices of the company. Investors of the company had been keeping a close eye on Herbalife and the rumors that were going on in the market. As soon as this statement hit the market, the shares of the company showed a negative movement.
Reporters tried to get in touch with someone from Herbalife Ltd. (NYSE:HLF) to get more insights on this matter, but nobody came ahead to speak about this matter. Some of the market experts claim that this statement of Pershing Square would change the way investors perceive the company, in the long run. It can be difficult as well as dangerous for the company to ignore the questions being asked by the reporters.
Pershing Square is headed by Bill Ackman, who is known as a critic of Herbalife’s business practices. He was heard speaking at an investment conference lately. He supported the comment made by his company and said that there was no hidden game in the statement. Pershing Square stated facts what were already known to everyone.