Is Herbalife A Pyramid Scheme – YES, According To Bill Ackman

If you have to ask Bill Ackman if Herbalife is a Pyramid Scheme, his answer will be YES. The head guy at the Pershing Square Capital Management hedge fund is convinced that the multilevel marketing company, Herbalife, is into pyramiding.

Here’s what Ackman said to Denver Post:

“[Ackman] claims it’s a pyramid scheme that targets the ‘financially unsophisticated’ and ‘lowest income people’. He says it simply must be shut down by the Federal Trade Commission. He has shorted the stock and said he expects its value to go to zero once this happens.”

Ackman also told CNN Money’s Maureen Farrell that he will go “to the end of the earth” for his a massive short position on Herbalife to play out.

“If the government comes out and determines that this is a legal business then I will lobby congress for them to change the law.”

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