Bill Ackman release a Netflix movie againt Herbalife
The businessman Bill Ackman, who has made a $1 billion bet that the publicly traded nutritional supplement company Herbalife is going to collapse.
The movie “Betting on Zero” is, at best, an infomercial targeting the direct selling industry and companies like Avon, Mary Kay, etc. Products from direct selling companies are typically not sold in retail stores but are available through a network of independent, this kind of companies make more than $36 billion in retail sales and involved more than 20 million people.
Herbalife claims Ackman is simply a market manipulator trying to make a huge fortune from short-selling their stock, but Ackman insists Herbalife deliberately targets low-income and immigrant communities and robs them of their life savings.
A couple of day ago, the Federal Trade Commission announced it reached a settlement with Herbalife. The company agreed to pay $200 million into a consumer relief fund and to restructure its compensation policy for distributors in order to avoid charges of operating an illegal multi-level marketing business, more commonly known as a pyramid scheme.
Is this the start of the fall of Herbalife or just a stone in the shoe?