January 9, 2013

Dan Loeb on FTC and Herbalife

Dan Loeb on FTC and Herbalife.

Via NYTimes 
The pyramid scheme is a serious accusation that we have studied closely with our advisors. We do not believe it has merit. The short thesis rests on the notion that the FTC has been asleep at the switch, missed a massive fraud for over three decades, and will shortly awaken (at the behest of hedge fund short seller) to shut down the Company. We find this thesis to be preposterous, particularly since the FTC has been sensitive to frauds of this kind. Since 1997, the FTC has brought 13 separate cases against alleged pyramid schemes.

The players in the Herbalife drama –

  • Herbalife - HLF
  • FTC – the regulator
  • Bill Ackman – the short
  • Robert Chapman – the long
  • Dan Loeb – the long

More history of Herbalife drama at Herbalife Bill Ackman vs Robert Chapman.

The drama will reach its peak tomorrow, Jan 10, when Herbalife replies to the questions raised.

Tags: herbalife drama, dan loeb ftc herbalife, bill ackman vs dan loeb herbalife, bill ackman vs robert chapman herbalife