Mr. Pink's Picks: selected event-driven value investments Message Board

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

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From: StockDung	4/11/2014 4:40:16 PM
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Tie a yellow police ribbon 'cross the Herbalife doors The crimms are inside faces pressed to the floor everybody sing!! ======================================================= Herbalife Shares Tumble Amid Report of Criminal Probe April 11, 2014, 4:23 PM ET Herbalife Shares Tumble Amid Report of Criminal Probe BySteven Russolillo Herbalife Ltd. shares slumped sharply Friday following a report that the the U.S. Department of Justice and the Federal Bureau of Investigation are investigating the nutritional-supplement maker. Bloomberg News The criminal investigation comes after the Federal Trade Commission last month started its own investigation into Herbalife, a company that has spent more than a year battling hedge fund manager BIll Ackman over allegations that it operates a pyramid scheme. News of the criminal investigation was reported by the Financial Times. The inquiry may not lead to any charges, the publication said, and Herbalife has not been accused of any wrong doing. Shares slumped 14% to $51.48 Friday on heavy trading volume. “We have no knowledge of any ongoing investigation by the DOJ or the FBI, and we have not received any formal nor informal request for information from either agency,” Herbalife said in an emailed statement. “We take our public disclosure obligations very seriously. Herbalife does not intend to make any additional comments regarding this matter unless and until there are material developments.” Herbalife has been in the spotlight since late 2012 when Mr. Ackman bet more than $1 billion that Herbalife shares would fall. He called the business model a pyramid scheme and said the company should be investigated by federal authorities. The company has vehemently denied his allegations and has touted the legitimacy of its business on various occasions. Mr. Ackman’s stance has also prompted a bitter public battle with investing titan Carl Icahn, who has taken a sizable stake in the company and has representation on Herbalife’s board. Herbalife shares were one of the top performers last year and climbed as high as $83.51 in early January. But the stock slumped since then and is now down 33% this year. [iframe style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; WIDTH: 100%; PADDING-RIGHT: 0px; PADDING-TOP: 0px" class=iframeReset height=369 marginHeight=0 border=0 src="http://graphics.wsj.com/documents/iggy/?allowdecimals=1&countrycode=US&d=auto&dek=&drad=radio1d&e_group=0&e_ic=1&e_nav=0&e_nb=0&echtadj=0&ed=&efut=0&etime=0&exchangeiso=XNYS&ezone=0&ftime=09%3A30&hed=Herbalife&i=HLF&idxs=none&instrumenttype=Stock&nod=2&scom=0&sd=&size=g&src=Source%3A+WSJ+Market+Data+Group&ttime=16%3A30&ybot=&yl=&yld=Solid&yll=&ylxp=right&ytop=&zdir=%2B&zhrs=00&zlabel=&zmin=0" frameBorder=0 width=553 marginWidth=0 scrolling=no][/iframe] Copyright 2014 Dow Jones & Company, Inc. All Rights Reserved This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com

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