Did Bill Ackman win against Herbalife?
Ackman, who lost a yearslong $1 billion bet against Herbalife HLF, left a long post on X, formerly Twitter, about Herbalife on Thursday, renewing some of his previous accusations that the company was a “
And although Herbalife was eventually forced by the Federal Trade Commission to pay $200 million to consumers hurt by its practices and make changes to its business, this time, unlike with MBIA, Mr. Ackman didn't reap the benefits. By 2018, Mr. Ackman sold his entire position in the company and lost roughly $1 billion.
In 2018, Ackman announced that he had sold his entire position in Herbalife, marking the end of his six-year battle against the company.
Attacking Herbalife
In the most high profile case of its type in recent investment history, in 2012 Ackman took a short position on Herbalife stock that at one time was valued at as much as $1 billion.
Shares of health and wellness products company Herbalife (NYSE:HLF) fell 7.1% in the morning session as major indices pulled back and yields soared after the Bureau of Labour Statistics reported CPI (Consumer Price Index - a gauge of the average price consumers pay for goods and services) for the month of March 2024 ...
Ackman, who lost a yearslong $1 billion bet against Herbalife HLF, left a long post on X, formerly Twitter, about Herbalife on Thursday, renewing some of his previous accusations that the company was a “pyramid” scheme and saying it was a good day for his “psychological short” on the company.
With a 26% stake, Carl Icahn remains Herbalife's largest shareholder. According to TheStreet, Icahn has made almost $1 billion profit from his investment. Meanwhile, Ackman has lost close to $1 billion on Herbalife. In this billionaire brawl, Icahn clearly came out the winner—at least in this round.
Herbalife didn't respond to requests seeking comment on Ackman's allegations. The activist investor's assertions are nothing new. He was locked in a five-year battle after opening a $1 billion bet against Herbalife in 2012, claiming that the seller of weight-loss shares and vitamins was an illegal pyramid scheme.
At the root of the recent decline in Herbalife's share price is a combination of sluggish sales growth and higher costs. For all of last year, worldwide sales fell to $5.06 billion from $5.20 billion in 2022.
Herbalife Nutrition is a multi-level marketing company.
Who is the highest paid Herbalife?
| Rank | Name | Annual Income (est.) |
|---|---|---|
| 1 | Enrique & Graciela Varela | $3,540,000 |
| 2 | A. Benitez & Raquel Cortez | $3,000,000 |
| 3 | John & Lori Tartol | $2,880,000 |
| 4 | Susan Peterson | $2,880,000 |
Ackman gives up on Netflix, taking $400 million loss as shares tumble | Reuters.
I was just sick of being fat, so I didn't want to stay that way. With the help of a positive mind and Herbalife, I ended up losing over 40 pounds and so many inches I've lost track. I do remember my waist blowing up to 34 inches, and it's now down to 26! I'm no longer a size 14, I'm a size 6 — and I feel amazing.
No, Herbalife is not allowed to operate in China. In 2005, the Chinese government declared that direct selling companies such as Herbalife were illegal in the country due to concerns over pyramid schemes and fraudulent business practices.
The FTC sued Herbalife in 2016, alleging Herbalife and its affiliates deceived consumers into believing they could earn substantial money selling diet, nutritional supplement, and personal care products.
Herbalife, founded in 1980, sells meal replacement shakes, instant herbal beverages with tea extracts, dietary supplements, and drinks derived from the aloe vera plant. Its website boasts that, in 2022, five million of its protein shakes were consumed daily. Herbalife works hard at maintaining legitimacy.
He was locked in a five-year battle after opening a $1 billion bet against Herbalife in 2012, claiming that the seller of weight-loss shares and vitamins was an illegal pyramid scheme.
Balance sheet: Icahn earned around $1.3 billion from his Herbalife bet, while Ackman (who cashed out in 2018) lost nearly $1 billion.
Under the terms of the contract, Icahn owed Ackman and his investors about $4.5 million. Icahn refused to pay. Ackman sued. Eight years later, Icahn was forced to pay the $4.5 million plus 9% interest per year, by court order.
BOTTOM LINE: The Herbalife diet is pricey and involves highly processed shakes and many supplements, some of which have been linked to negative health effects. Short-term use likely causes weight loss, but long-term effectiveness is yet to be studied.
How many people lose money with Herbalife?
The Federal Trade Commission is mailing checks to nearly 350,000 people who lost money running Herbalife businesses.
Herbalife Ltd. has completed the payment of a $12.5 million federal settlement related to a potential $1 billion class-action lawsuit filed against the company in September 2017. The manufacturer, which has its East Coast operations in Winston-Salem with more than 750 employees, agreed to the settlement in July.
Herbalife Ltd. changed its name to Herbalife Nutrition Ltd. Herbalife Nutrition CEO Rich Goudis said the new name reflects the company's "strategic transformation as a leader in the nutrition industry."
Ackman has crusaded against his alma mater, Harvard following what some students and alumni said was a weak and late response from Harvard to the atrocities in Israel. Ackman is Jewish and his wife was born in Israel.
The greatest bet of Ackman's career, and arguably one of the best hedge fund trades of all time, was Pershing Square's turnaround of troubled mall operator General Growth Properties from the brink of bankruptcy, netted the hedge fund a whopping $1.6 billion return on a $60 million investment.
