Bill Ackman has little to fear from the Herbalife stock-manipulation investigation, experts say - at least for now

Hedge fund manager Bill Ackman has little to fear from a government investigation into Herbalife stock manipulation, legal experts say - at least based on what has been reported about the inquiry so far.

The investigation centers on Ackman's billion-dollar short of Herbalife with his hedge fund, Pershing Square. To be liable for stock manipulation, these experts say, prosecutors would have to prove not only that Herbalife's stock was illegally manipulated but also that Ackman and Pershing Square knew about the illegal acts and sanctioned them.