Ackman to Push Herbalife (HLF) Foreign Investigation, Bloomberg Says

After the FTC settled with Herbalife (HLF) over its direct-selling business practices, Bill Ackman will push foreign regulators to investigate the company, Bloomberg's Vonnie Quinn said today.
By Lindsay Rittenhouse ,

NEW YORK (TheStreet) -- Pershing Square Capital Management CEO Bill Ackman is "maintaining his bet against" Herbalife (HLF) - Get Report despite its $200 million settlement with the Federal Trade Commission (FTC) over its direct-selling business practices, Vonnie Quinn reported on "Bloomberg Markets" Wednesday.

"Ackman plans to maintain it and will push regulators outside of the U.S. to investigate the company," Quinn continued.

Per Herbalife's settlement with the FTC last week, the nutrition company was deemed not a "pyramid scheme" after agreeing to completely alter its operations business. Changes include reporting how much product is sold.

Activist hedge fund manager Ackman pushed Pershing to engage in the multi-year, $2 billion federal investigation into Herbalife, which he called a "Ponzi scheme" with a worthless stock.

Shares of Herbalife are higher by 0.08% to $64.63 late this morning.

Separately, TheStreet Ratings rated Herbalife as a "buy" with a score of B.

This is driven by a few notable strengths, which can be seen in multiple areas, such as its notable return on equity, expanding profit margins, solid stock price performance, impressive record of earnings per share growth and increase in net income. TheStreet Ratings feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: HLF

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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