The Business Journal – Hedge fund manager Bill Ackman isn’t done with Herbalife.
In a letter to investors this week, Ackman claims that allegedly sketchy recruiting methods used by Herbalife distributors is continuing, even though the company promised the methods would be banned as of June 30, the New York Post reports.
Ackman grabbed financial headlines a year ago when he publicly charged that the California-based nutritional products company was essentially run as a pyramid scheme.
Ackman claimed Herbalife distributors would “troll the Internet for new recruits” then sell the names to new distributors for $50 to $100 each, the Post said.
“The practice, considered indicative of a pyramid because it focuses solely on recruitment, is believed to have become even more lucrative than selling Herbalife products,” the Post said, in reference to Ackman’s claims.