The FTC Has Released A Gigantic Document Dump Showing Angry Customer Complaints About Herbalife
According to the Post's report, the FTC is probing the multi-level marketing company that sells nutrition products.
Herbalife has been one of the most controversial stocks lately.
Bill Ackman, the founder of Pershing Square, has publicly said he's shorting more than 20 million shares of the MLM. Ackman gave a presentation in December saying that he believes the company is a "pyramid scheme" and has a price target of zero.
Herbalife responded Ackman's thesis calling it a "malicious attack" and accused him of using "outdated" and "inaccurate information."
After Ackman publicly declared his short, hedge fund heavyweight Daniel Loeb, the founder of Third Point LLC, took out a 8.24% stake in the company on the long side. Some other fund managers have also gone long Herbalife after disagreeing with Ackman's short case.
Right now, it looks like Ackman is winning the hedge fund war.
Herbalife's stock is getting hammered today on the FTC news. The stock was last trading down more than 5.9%, well below the pre-Ackman short levels.
We combed through the 729 pages of complaints available on the FTC's website, which have been largely redacted, and have included some of them in the slides that follow.
That being said, a lot of the customer complaints were requesting a refund of the $9.95 they paid for an introductory DVD into the company, while others complained about receiving spam emails and unwanted telephone calls.