NEW YORK (TheStreet) -- Bill Ackman, CEO of Pershing Square Capital Management (PSHZF), commented on Herbalife's (HLF - Get Report) settlement with the FTC, CNBC's Scott Wapner reported on "Fast Money Halftime Report" Friday.
HerbaLife, retailer of supplemental drinks and other food products, has agreed to pay a $200 million to consumers and change its business practices as a part of the settlement with the FTC.
Bill Ackman has been shorting Herbalife since 2012, claiming the company is a pyramid scheme, only paying its distributors based on how many people they recruit. Ackman has released 18 webinar videos of Herbalife team members attempting to recruit distributors by providing false information.
"While it appears Herbalife negotiated away the words 'pyramid scheme' from the settlement agreement, the FTC findings are clear," Ackman said in his comments to CNBC.
The settlement will require Herbalife to compensate its distributors for how much they sell, not how many people they can recruit, Edith Ramirez, FTC Chairwoman said in a statement announcing the settlement.
Ackman is pleased that the FTC has found that most Herbalife distributors make little to no money from retailing Herbalife products.
"There are no longer any meaningful incentives to become or remain a Herbalife distributor. We congratulate the FTC for enforcing the law that would lead to protections for consumers in the U.S. and the rest of the world," Ackman told CNBC.
Shares of Herbalife are up by 8.39% to $64.34 this afternoon.
Separately, TheStreet Ratings team set this stock at a "buy" with a ratings score of B. The company's strengths 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 team feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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. TheStreet Ratings has this to say about the recommendation:
You can view the full analysis from the report here: HLF