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Herbalife Comments On ABC News Report Exposing More Of Bill Ackman’s Undisclosed Financial Arrangements

Herbalife (NYSE:HLF), a leading global nutrition company, today issued the following statement regarding a recent report from ABC News:
       

ABC News has revealed new information regarding Bill Ackman’s, Founder and CEO of Pershing Square Capital, unprecedented $1 billion campaign to manipulate Herbalife’s stock to the detriment of Herbalife’s shareholders, customers and employees. Mr. Ackman’s campaign, part of which was uncovered by ABC News, is losing its credibility with each passing day.
 
The previously unreported information includes confirmation that Mr. Ackman has spent more than $20 million to date on his campaign. This includes a contractual arrangement to pay an individual up to $3.6 million over 10 years to make accusations against Herbalife, in addition to Mr. Ackman’s agreement to pay the individual’s legal fees and arrange his public relations efforts. Importantly, when the individual was on ABC News – an interview that Mr. Ackman’s PR team helped to arrange – he failed to disclose the existence of his contract with Ackman and, in fact, the contract itself contains a confidentiality clause.
 
The payments are only one part of a calculated, coordinated and well-funded effort by Mr. Ackman and his agents to offer secret, undisclosed payments to individuals and organizations to bring false and misleading charges against Herbalife.
 

The ABC News story raises a number of important questions that Mr. Ackman should answer fully and honestly:
 
  • How has Mr. Ackman spent the $20 million?
  • Who else has Mr. Ackman or his team of agents and consultants made payments to, directly or indirectly, or made future contingency payment offers to?
  • Did Mr. Ackman disclose his financial inducement with these individuals when lobbying state and federal regulators and lawmakers?

Herbalife also commented:

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