I advise all shorts to search "herbalife daily consumption model"
Ackman left out a big piece of the story. How can people consuming hearblife product one meal at a time be a pyramid scheme? Certainly sounds like retail sails to me. FTC goes after pyramids that have no real product. Herbalife is a publicly traded company with billions in real product. Sure they benefit from all the distributors who buy inventory and then decide to quit. But thats Ackmen's problem, not shareholders problem, or even the FTC's problem. Herbalife has proper disclosure in sales literature. If there are independent distributors who promise the moon and people get ripped off, once again, thats not Herbalifes problem. But they benefit from it. Its a beautiful model. It is an immoral model in some respects. But good chunk of the business is probably legit. The beauty is that shareholders benefit from all aspects of the activity. Its amazing actually! And its spreading like wild fire. Spain, Mexico Brazil. Ackmen can't stop it in those countries.