Wednesday, February 20, 2013

Herbalife raises 2013 forecast, reveals SEC staff inquiry




From Bloomberg: Herbalife Ltd, the diet supplements company that has become a battleground for Wall Street titans William Ackman and Carl Icahn, raised its 2013 earnings forecast on Tuesday.  The company also revealed in a regulatory filing the staff of the Security and Exchange Commission's Division of Enforcement has been inquiring about the company's operations since December.

The company, which sells products through a network of independent distributors, has come under intense scrutiny from Pershing Capital Management's Ackman, one of the world's most closely watched hedge fund managers, who in December revealed a short position in the stock and called the business "a pyramid scheme."

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