Icahn, Banks Propping Up Herbalife Scheme, Short-Seller Says

Law360, New York (March 13, 2013, 6:42 PM EDT) -- An attorney and investor who holds a short position in the stock of Herbalife Ltd. sued three U.S. banks, a slew of finance executives and the activist-investor Carl Icahn in New York federal court Wednesday, alleging they are aiding and abetting the vitamin distributor’s alleged pyramid scheme.

In two separate suits, attorney Daniel Ravicher said that Bank of America Corp, JPMorgan Chase & Co., Wells Fargo & Co. and their executives had refused to withdraw a combined $1.2 billion line of credit to Herbalife, despite allegedly...
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