Somewhere, Bill Ackman is smiling.
Herbalife Ltd. HLF -4.70% shares dropped as much as 12% Monday morning after The New York Post reported the nutrition company may be under investigation by the Federal Trade Commission. The publication cited documents obtained via the Freedom on Information Law. The Wall Street Journal reported last month that officials at the Securities and Exchange Commission have opened an inquiry into the company amid the public scrutiny.
The Post’s report comes more than a month after Ackman publicly said he was betting against Herbalife, a company that he says operates as a pyramid scheme. Ackman’s firm Pershing Square Capital Management has bet more than $1 billion that Herbalife’s stock price will fall. He has called for the government to shut down the company. http://blogs.wsj.com/marketbeat/2013/02/04/ftc-reportedly-investigating-herbalife-shares-tumble/
