arset="UTF-8" /> Ackman accuses Herbalife of breaking laws in China | Local Healthcare
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Ackman, CEO of Pershing Square Capital Management LP talks to reporters before AGM of CP Rail in CalgaryBy Svea Herbst-Bayliss BOSTON (Reuters) – Hedge fund manager William Ackman renewed his attack on Herbalife on Tuesday and said he has evidence the U.S.-based nutrition and weight loss company is breaking direct-selling laws in China, its fastest growing market. Ackman, who has placed a $1 billion short bet against Herbalife, said the company was making recruits pay an entry fee and letting distributors recruit new members, activities he said were illegal in China. Herbalife said it follows local laws. Chinese regulators have yet to comment on the matter but direct sales models have recently come under fire in China, where authorities launched a probe in January into Herbalife’s rival NU Skin Enterprises Inc after state media reported that it brainwashed its members.

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