Discussion on Herbalife

Herbalife
Herbalife is a global nutrition and weight management company. It is located in Los Angeles, United States and its products are sold exclusively via distributors. Herbalife has a ‘multi-level marketing’ model, much like Amway, Avonmeaning it does not have retail stores and there are no services after one buys the products. It sells its products in about 88 countries around the world. It first sells its products to local level sales staff and they in turn sell their products to their friends and relatives and so onand so forth. It is a public company listed on the New York Stock Exchange and in the past year, its prices have hovered in the range of $30 to $65.
Carl Icahn is the founder and majority shareholder of Icahn Enterprises, a diversified conglomerate holding company based in New York City, formerly known as American Real Estate Partners. He is also Chairman of Federal-Mogul, an American developer, manufacturer and supplier of powertrain components and vehicle safety products. In the 1980s Icahn developed a reputation as a "corporate raider" after profiting from the hostile takeover and asset stripping of the American airline TWA. According to Forbes Magazine, Icahn has a net worth of $16.6 billion making him the 26th wealthiest person on the Forbes 400, and the 5th wealthiest hedge fund manager as of February 2017.According to Fortune Magazine, U.S. President Donald Trump asked Icahn to serve as a special adviser on financial regulation within his administration starting January 2017. He is also the majority shareholder of Herbalife.Carl Icahn received approval from the U.S. Federal Trade Commission to acquire up to a 50 percent stake in the sports nutrition company Herbalife (HLF) in October 2016, following a $200 million settlement with the FTC earlier that same year, the FOX Business network has learned.This may pose a fresh challenge for the brash billionaire. As a special advisor to President Trump on regulatory reform, it poses clear conflict of interest issues if Icahn decides to acquire a bigger stake in Herbalife.
BillAckman (born May 11, 1966), is an American investor, hedge fund manager, and philanthropist. He is the founder and CEO of Pershing Square Capital Management, a hedge fund management company. Ackman is considered a contrarian investor，but he considers himself an activist investor.His investing style and investments have drawn considerable critical praise and criticism from U.S. federal and state government officials, heads of other hedge funds, various retail investors, and the general public. Ackman's most notable market plays include shorting MBIA's bonds during the 2008 financial crisis, his proxy battle with Canadian Pacific Railway, as well as his stakes in the Target Corporation, Valeant Pharmaceuticals, and Chipotle Mexican Grill. He is currently engaged in his 2012 shorting attempt of Herbalife, claiming the company is a pyramid scheme designed as a multi-level marketing firm.
Herbalife paid $200 million to compensate consumers to settle Federal Trade Commission charges that the companies deceived consumers into believing they could earn substantial money selling diet, nutritional supplement, and personal care products.In its complaint against Herbalife, the FTC al...