April 21, 2014 |
Activist investor Bill Ackman is partnering with Valeant Pharmaceuticals in an attempt to buy Orange County pharmaceutical company Allergan Inc., which sells the popular wrinkle treatment Botox. Ackman's Pershing Square Capital Management said in a public filing on Monday that it was partnering with Valeant to acquire shares of Allergan. Pershing Square and Valeant agreed to the partnership on Feb. 25, Ackman said in a filing with the Securities and Exchange Commission. Valeant said in a statement that it believed a partnership with Allergan would be best for both companies.
April 11, 2014 |
Shares of Herbalife Ltd. suffered their biggest loss in more than a year Friday following a report that criminal authorities are investigating the Los Angeles nutritional products company. The FBI has launched a criminal investigation of Herbalife and its web of independent distributors, a federal law enforcement source told The Times. A federal law enforcement official in New York confirmed Friday that the FBI had opened an inquiry into Herbalife but did not know first-hand the extent of the investigation.
March 12, 2014 |
The Federal Trade Commission has launched a civil investigation into Herbalife Ltd., the Los Angeles-based nutritional-products maker said Wednesday. Herbalife did not disclose any details of the probe, but it has been waging an ongoing battle against a hedge fund manager's allegations that it is running a thinly disguised pyramid scheme. The company reiterated its long-stated position that its business model is sound and said it would cooperate with the inquiry. "Herbalife welcomes the inquiry given the tremendous amount of misinformation in the marketplace, and will cooperate fully with the FTC,” the company said in a statement.
March 12, 2014 |
The rancorous battle over Herbalife's business practices took a critical turn as the company revealed that it is being investigated by the Federal Trade Commission. Herbalife did not reveal details of the probe, but the Los Angeles nutritional products maker reiterated its long-held position that its business model is sound. The company has been the target of accusations that it operates a pyramid scheme. "Herbalife welcomes the inquiry given the tremendous amount of misinformation in the marketplace, and will cooperate fully with the FTC," the company said in a statement.
February 20, 2014 |
Activist hedge fund manager Bill Ackman continued his relentless attack on Herbalife, releasing a report that accuses millionaire Herbalife distributor John Tartol of misleading others into selling the company's nutrition products. Ackman's company, Pershing Square Capital Management, said in the report released on its website Thursday that Tartol has made millions of dollars by misleading people into believing they can get rich as independent Herbalife distributors. “What took us that many years to do - 25, 30-plus years - you can all do in the next six, seven, eight years,” Tartol said at a 2011 Herbalife convention in Las Vegas, according to Ackman's report.
December 18, 2013 |
A year ago, activist investor Bill Ackman rocked Wall Street with a $1-billion bet that shares of Herbalife Ltd., the Los Angeles seller of weight-loss and nutrition products, would slide to zero. Herbalife was a "pyramid scheme," bound to be undone by regulators and destroyed, he told the Los Angeles Times and other media outlets Dec. 19. Herbalife shares plummeted 42% in the next five days, hitting a midday low of $24.24 on Christmas Eve. At the time, it seemed that 2013 would be difficult for Herbalife.