Ackman: We Spent Investors’ $50M Probing Herbalife, $HLF’s Nutrition Club Is ‘Total Fraud’
Bill Ackman, Pershing Square CEO and Founder, spoke with Bloomberg Television’s Stephanie Ruhle and Erik Schatzker about his team’s two-year investigation of Herbalife and the company’s alleged fraud. He also discussed his bid for Allergan.
Ackman said that he has spent “approaching $50 million” of investor money investigating Herbalife. He said: “Trust me, when you see the stuff we have tomorrow you will conclude that the money was well spent.”
He pointed to Enron as a hint to what will be revealed in tomorrow’s presentation:
“The only clue I’ll give you for tomorrow is that Enron, if you remember, had a fake trading room. They were touring people around the Enron campus, I don’t remember if is an auditor or whatever, to talk about the trading operation. They actually set up work stations and had people sitting there looking like they were trading.”
Ackman also said:
“We have hundreds of hours of recorded conversation. This is stuff we’ve not yet turned over to the government. We will be doing that promptly after the presentation. But this is new material…The whole growth of the company in the last several years, the emphasis has been what they call daily methods of consumption in which the nutrition club is the biggest driver. And the nutrition club is a total and complete fraud.”
source: Bloomberg Television