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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments

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From: StockDung10/21/2013 2:29:01 PM
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Tensions flare between Herbalife and demonstrators in L.A.
October 21, 2013, 1:04 PM


It’s not just Pershing Square’s Bill Ackman. Others are alleging that Herbalife Ltd. /quotes/zigman/361145 /quotes/nls/hlf HLF -1.41%is a pyramid scheme and that led to some heated words (and bodily fluids) flying outside a big Herbalife event in Los Angeles this past Friday, according to Reuters.

Latino and African-American groups have recently called upon California Attorney General Kamala Harris to launch a probe into Herbalife, alleging the company is a pyramid scheme.

As the League of United Latin American Citizens and other civil rights groups protested outside Herbalife’s Extravaganza Latina event, it appears the Herbalife faithful didn’t take too kindly to the allegations, Reuters reported.

Outside the convention center where Herbalife hosted its event the atmosphere became testy when some distributors spat at some of the community activists and when Herbalife CEO Michael Johnson arrived, several eye witnesses said.

“Johnson approached us and was very confrontational,” said Randy Fox, a regional director for LULAC, adding “he told us ‘You don’t know the facts. We don’t want to hear your lies. This is all lies. You should be ashamed of this.” Herbalife spokesman James Golden declined to comment on the matter.

Herbalife spokeswoman Barbara Henderson did not respond to requests for a comment on the incident.

Shares of Herbalife fell 1.1% to $64.15 in recent trading. The stock is up 95% for the year, causing Ackman to restructure his big short bet against the company.

–Wallace Witkowski

Follow The Tell on Twitter @thetellblog

Follow Witkowski @wmwitkowski
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