Herbalife Shares Decline on Criminal Inquiry News
Source: NY Times
By BEN PROTESS and MATTHEW GOLDSTEIN
Herbalife shares plunged late Friday afternoon after a news report linked the diet supplements company to a criminal investigation.
The Financial Times reported that federal prosecutors and the F.B.I. were scrutinizing Herbalife, news that ignited a sell-off in Herbalife shares. The stock finished the day down nearly 14 percent at $51.48.
The hedge fund manager William A. Ackman has staked a billion-dollar bet that the company is a pyramid scheme.
But it is unclear whether the F.B.I. investigation has gained much momentum. An official briefed on the matter told The New York Times that the inquiry had continued for several months without Herbalife receiving a subpoena. It is possible, the official said, that the authorities will close the case without taking action against Herbalife.
FULL story at link.
Read more: http://dealbook.nytimes.com/2014/04/11/herbalife-shares-fall-on-report-of-criminal-inquiry/
Brendan Mcdermid/Reuters
Herbalife shares have fluctuated over the last 17 months.
= new reply since forum marked as read
whose top sales rep and recruiter killed himself.
rocktivity
