Monday was the second consecutive session when Herbalife Ltd. (NYSE:HLF) registered a positive growth in the market. The primary reason behind this straight growth was nothing but company’s extraordinary efforts to fight against Bill Ackman’s claims. As per the reports, he stated that Herbalife is nothing but a ‘pyramid scheme.’
Insights On the Matter:
Management of the company has come out with the support of Herbalife. John DiSimone, Chief Financial Officer, Herbalife is trying his best to find a suitable answer to Ackman’s comments. As per the reports, DiSimone is travelling the country and visiting some of the prominent investors of the company to win their trust and get a clear idea about their stand. The analysts who gave information about DiSimone’s visit declined to come in the light.
There are a lot of rumors going in the market about Herbalife and Ackman’s comments about the company. Reporters tried to get in touch with Michael Gutierrez to know more about this matter, but they didn’t get any reply. Gutierrez, who is the director of Public Relations at Herbalife, refused to comment on this issue.
Ackman’s history with Herbalife is not amusing. Previously, DiSimone had verbally attacked him in the public stating that the company might think of suing him in the future. Ackman is a hedge fund manager, who is known for giving controversial statements about the Herbalife from time to time. In the starting of March, Wall Street Journal quoted that federal prosecutors had taken the statements of a few contractors hired by Perishing Square, which is owned by Ackman. All the supporters of Herbalife considered it a good sign.
As per the reports, Ackman tried to sue Herbalife by stating it as a ‘pyramid scheme,’ but a California judge dismissed his suit due to lack of evidences. With Monday’s rally, Herbalife Ltd. (NYSE:HLF) touched $48 mark before ending the day at $45. It is expected to continue in the future as well.