October 17, 2013 |
A group of black and Latino community leaders is calling on California Atty. Gen. Kamala D. Harris to launch an investigation into nutritional products maker Herbalife Ltd., accusing the Los Angeles company of being a pyramid scheme. The activists -- including members of the League of United Latin American Citizens, Southern Christian Leadership Conference, Congress of Racial Equality and more -- plan to make their case in a news conference in downtown Los Angeles on Friday. The group alleged in a release that Herbalife uses deceptive marketing and predatory business practices to lure minorities with “extraordinary rags to riches stories even though the vast majority of the participants caught up in the scheme lose money and quit within a year.” Herbalife officials have said that at least 60% of their distributors are Latino.
October 15, 2013 |
This has been a good year for Mary Jo White, the new chair of the Securities and Exchange Commission, and not such a good one for Apple Inc. Chief Executive Tim Cook and New York hedge fund manager Bill Ackman. That's the view of Worth magazine, which pegged White as the most powerful person in finance, ahead of President Obama and Fed Chairman Ben S. Bernanke. The magazine this week released an updated list of the 100 most influential people in finance, introducing White at the top of the list, while Cook and Ackman got the ax. Bill Gates, Peter Thiel and Warren Buffett fell, but stayed in Worth's top 100. STOCK SPOTLIGHT: Profiles of Southern California public companies “This year's list is compelling in many ways, starting with the fact that a woman, SEC Chair Mary Jo White, holds the top spot for the first time,” said Worth's editor, Richard Bradley.
October 3, 2013 |
Activist hedge fund manager Bill Ackman said he has closed nearly half of his short position on the stock of Los Angeles nutritional products company Herbalife Ltd. but said he still firmly believes it is a pyramid scheme that will attract regulatory action. In December 2012, Ackman told investors that he believed Herbalife operated a pyramid scheme and would ultimately be shut down by regulators. He announced that he had taken a $1-billion short against the company's stock, a move that would allow his fund to profit if Herbalife shares fell.
September 26, 2013 |
J.C. Penney publicly defended its trajectory Thursday after watching its stock plunge amid speculation that it needed another financing boost. In a statement, the retailer said it is “pleased with its progress thus far in the company's turnaround and the traction its initiatives are starting to achieve.” J.C. Penney also said it was “starting to see greater predictability in its performance across many areas” -- a nod to several recent...
September 17, 2013 |
Shares of nutritional products maker Herbalife Ltd. hit a 52-week high Tuesday, putting billionaire hedge fund manager Bill Ackman deeper in the hole on his $1-billion bet that the stock will go to zero. Herbalife shares reached a one-year intra-day high of $73.91 and a closing high of $73.29 on speculation that the company may start aggressively repurchasing its shares. The Los Angeles company was one of the more volatile stocks on Wall Street after Ackman accused the company last December of operating a pyramid scheme and said he took a $1-billion short position in the stock, meaning he would profit from a price drop.
September 5, 2013 |
Nutritional products company Herbalife Ltd., battling allegations that it operates an illegal pyramid scheme, has a new and unexpected advocate: former Los Angeles Mayor Antonio Villaraigosa. Villaraigosa, who left office June 30 after eight years as mayor, will serve as a senior advisor to Herbalife Chief Executive Michael O. Johnson and the company's board of directors, the company said Thursday in a news release. Villaraigosa will counsel Herbalife on "strategic business development and global community outreach," the Los Angeles company said.