NEW YORK (TheStreet) -- Herbalife (HLF) was rising 1.81% to $65.91 at 1:31 p.m. on Monday after the company issued a statement to denounced William Ackman's claims that the company is a pyramid scheme.
The New York Times published an article on Sunday in which it detailed Ackman's meticulous and aggressive campaign to put pressure on lawmakers and other officials to investigate and consequently eliminate Herbalife in order to protect the $1 billion bet he made against the company. The bet came in the form of a short, which only pays off if Herbalife's stock drops.
Herbalife issued the following statement on Monday in response to the article:
"For the past 15 months, Bill Ackman has executed an unfounded, relentless and fraudulent public attack on Herbalife's business model, blasting Herbalife to any media outlet or hedge fund audience willing to listen. As The New York Times reports, Ackman has, out of desperation, shifted his focus from Wall Street to Washington and key states across the country. Ackman's unprecedented campaign to destroy Herbalife has now been exposed for what it is: a cynical, self-serving attempt to manipulate the market by buying his way into an investigation to cover his own reckless $1 billion dollar bet. There has never been merit to his accusations. Now we know how he has been orchestrating the appearance of outrage and concern. There should be no question any longer about Ackman's motives, his techniques and his goals."