Bill Ackman Argues Herbalife Is Breaking Chinese Laws In This New Presentation

Hedge fund manager Bill Ackman gave another presentation on Herbalife-a multi-level marketing company that he's betting $1 billion will go under.

Ackman, who runs Pershing Square Capital, declared over a year ago that he's shorting Herbalife because he believes the company operates as a "pyramid scheme."

Herbalife has publicly denied Ackman's allegations.

So far, the short hasn't played out in his favor either. He's lost an estimated $500 million in mark-to-market losses.

His latest presentation focuses on Herbalife's business practices in China. In short, Ackman believes that the nutrition company is violating Chinese direct-selling laws.

Specifically, Pershing Square alleges that Herbalife violates Chinese laws by doing the following:

• "Paying multi-level, royalties based upon unlimited downline levels"
• "Paying royalties and commissions totaling more than 30% of sales volume."
• "Incentivizing Distributors to recruit a potentially infinite downline in order for Distributors to reap sales-based 'Consulting Fees'"
• "Permitting and incentivizing individual Distributors to recruit other participants."

We've included his slidedeck. This time it was only 56 slides compared with his famous 342-slide presentation when he first unveiled his short thesis.