Activist Investor Says Herbalife Is Violating Chinese Law

Law360, New York (March 12, 2014, 1:55 PM EDT) -- Activist investor Bill Ackman is once again going after Herbalife Ltd., the health supplement distributor, saying Tuesday that the company’s structure violates direct-selling laws in China, a country that has become increasingly important to Herbalife’s bottom line.

Ackman, who heads New York-based hedge fund Pershing Square Capital LP, has been attacking Herbalife over the past year insisting that the direct-selling company is nothing more than a pyramid scheme. In a presentation on an investigation into Herbalife’s Chinese business model, he and other Pershing Square executives said...
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