Herbalife Chairman and CEO Michael O. Johnson responded today to questions regarding hedge fund manager William Ackman’s claims about Herbalife by saying, “The allegation that Herbalife is a pyramid scheme is bogus. Make no mistake: Today’s announcement isn’t about Herbalife’s business model. It’s about Bill Ackman’s business model.” Here’s what we know:
- An extraordinary number of puts on our stock are due to expire this Friday. We previously learned this activity was pegged to some kind of "significant event."
- Mr. Ackman suddenly announced today that he will make a presentation on Herbalife on Thursday, the day before the puts expire.
- Our CFO this morning asked Mr. Ackman to allow us to participate in his presentation. Mr. Ackman declined.
- We have been informed that Mr. Ackman has shorted our stock for the past 7 to 9 months.
- Our stock dropped almost 15 percent today following Mr. Ackman’s announcement.