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Herbalife (HLF) Under Criminal Investigation by DOJ/FBI
I think the issue is this: HLF (as well as a few other companies - I believe NuSkin is another) are classified as "Multi-level Marketing" companies, which is the most sketchy description of a business I've ever heard. I don't think what they're doing is illegal, but it's shady. I would be surprised if the company was hit with anything beyond a fine.
I do think the idea of Ackman lobbying congress to get something done about a company that he's bet against is something worth watching and could make things very interesting if he's actually successful.
I do think the idea of Ackman lobbying congress to get something done about a company that he's bet against is something worth watching and could make things very interesting if he's actually successful.
As they say winners write histories.
One has to be careful about ambiguous statements such as the quote above. It might be interpreted as a reprehensible act by activist investors who bet against a company and then lobby (bribe) government to bring it down. This would be the narrative if Herbalife won.
On the other hand, if Ackman prevails, the narrative would be a heroic attempt by an activist to expose an industry long propped up via massive lobbying efforts and neutralizing it with lobbying of his own in a much smaller scale - David vs Goliath story.
Read this article and think about what presents the greatest danger to society, a MLM company or a corruptible government.
Herbalife thieves or government thieves. Pick your poison. Gov't is already owned by Big Money.
Herbalife justifies its "business model" by re-defining everything. A cow isn't really a cow. It's a satellite dish. Or as Hawkeye Pierce told Colonel Henry Blake: "No Sir. I didn't steal that jeep. See? It's right out there."
Comments
Man.
It is as if Bill Ackman is being fed insider info from a whistle blower.
Ackman has been putting pressure on congressmen (http://www.nytimes.com/2014/03/10/business/staking-1-billion-that-herbalife-will-fail-then-ackman-lobbying-to-bring-it-down.html?_r=0) to do something about it. However, I just still think the company isn't going to be brought down by this unless there's real wrongdoing beyond the fact that the company's structure/general model is suspicious.
I do think the idea of Ackman lobbying congress to get something done about a company that he's bet against is something worth watching and could make things very interesting if he's actually successful.
One has to be careful about ambiguous statements such as the quote above. It might be interpreted as a reprehensible act by activist investors who bet against a company and then lobby (bribe) government to bring it down. This would be the narrative if Herbalife won.
On the other hand, if Ackman prevails, the narrative would be a heroic attempt by an activist to expose an industry long propped up via massive lobbying efforts and neutralizing it with lobbying of his own in a much smaller scale - David vs Goliath story.
Read this article and think about what presents the greatest danger to society, a MLM company or a corruptible government.
How lobbying dollars prop up pyramid schemes
At the minimum, it sets the lobbying in context.
Herbalife justifies its "business model" by re-defining everything. A cow isn't really a cow. It's a satellite dish. Or as Hawkeye Pierce told Colonel Henry Blake: "No Sir. I didn't steal that jeep. See? It's right out there."