Herbalife Tumbles as Ackman-Prompted Changes Hurt Sales

  |   05 November, 2014   |   379   |   3980

Herbalife Ltd. (HLF), which adjusted some sales policies in response to criticism from hedge-fund manager Bill Ackman, dropped after the changes hurt sales last quarter.



The stock sank 21 percent to $44.26 at the close in New York, following the company’s earnings report yesterday. The drop was the steepest since November 2008 and pushed the shares’ loss for the year to 44 percent.



Herbalife, which cut its earnings forecast for the year yesterday as sales declined in the Americas, has been fighting an almost two-year assault by Ackman, who says the company is an illegal pyramid scheme. He’s also helped push the U.S. Federal Trade Commission to investigate practices at the Los Angeles-based maker of weight-loss shakes and nutritional supplements.