Ackman Presses His Short By Attacking Herbalife Ltd. China

Bill Ackman’s short against Herbalife Ltd. (NYSE:HLF) is in the news again now that the Federal Trade Commission has decided to investigate allegations against the company, but Ackman isn’t content to attack the company only in the US. He has also claimed that Herbalife’s recruitment and compensation policies violate Chinese law. While pyramid schemes are illegal in most countries, the rules that distinguish between a pyramid scheme and a legitimate multi-level marketing business vary from place to place, so a business that is deemed legit in one country might be breaking the law in another. Ackman points to four restrictions…