Pershing Square Releases Statement Regarding Herbalife Claim That Allegations are Provably False
NEW YORK, March 10, 2014 /PRNewswire/ -- Pershing Square Capital Management, L.P. ("Pershing Square") today released the following statement:
"Pershing Square believes that Herbalife is a pyramid scheme based on over two years of research. We continue to share our research and findings with regulators, policymakers, law enforcement and other interested parties to shine a light on the company's and its distributors' illegal practices.
In an article today, Herbalife's Chief Financial Officer, John DeSimone, told the New York Times that Pershing Square's 'accusations are provably false.' Yet, Herbalife has failed to respond to basic questions that we and others have continued to raise.
Herbalife has refused to release actual retail sales information that it requires its distributors to maintain, instead relying on third party survey data. Herbalife has refused to address the documented false and misleading sales practices plied by its senior-most distributors, including John Tartol, a current member of Herbalife's Board of Directors. Despite documented evidence to the contrary, Herbalife continues to deny that it targets minority communities, including Latinos throughout the United States. Moreover, Herbalife continues to deny that its pays recruiting rewards, despite the fact that recruiters are paid cash commissions when a new distributor qualifies for the business opportunity through mandatory inventory purchases.
Tomorrow, at 2:00 p.m. EDT we will present evidence of Herbalife's violations of laws in China.
We look forward to Herbalife's evidence that our accusations are 'provably false.'"
Date: Tuesday, March 11, 2014
Time: 2:00 p.m. EDT
Registration: To register for the webcast, please visit www.factsaboutherbalife.com
For audio only, please use the following dial-in:
Passcode: 717 335 95
*International participants may join by dialing: +1 617-847-3007
About Pershing Square Capital Management, L.P.
Pershing Square Capital Management, L.P., based in New York City, is a SEC-registered investment advisor to private investment funds. Pershing Square manages funds that are in the business of trading — buying and selling — securities and other financial instruments. Funds managed by Pershing Square have established short and other bearish economic positions against securities of Herbalife Ltd. Pershing Square may change its views about, or its investment positions in, Herbalife at any time, for any reason or no reason. Pershing Square may buy, sell, cover or otherwise change the form or substance of its Herbalife investment. Pershing Square disclaims any obligation to notify the market of any such changes. Please see the full Disclaimer appearing on website www.factsaboutherbalife.com.
SOURCE Pershing Square Capital Management, L.P.