Photo: CNBC screenshot
Herbalife’s CEO Michael Johnson is responding to Bill Ackman’s short position on Herbalife. CNBC’s Kate Kelly first reported that Ackman, the CEO of Pershing Square Capital Management, is shorting Herbalife calling it a “pyramid scheme.”
Johnson said that Herbalife, which multi-level marketing company selling weight management, nutritional supplements and personal care products, is a “legitimate company.
He sounded angry during the segment calling it a “bogus accusation” and “blatant market manipulation.”
Johnson added later in the interview that they want to take SEC action.
He even responded to Ackman’s comments made back in October that the country will be better of once this company goes out of business. At the time he was referring to a short position that had not yet been revealed.
“The United States will be better when Bill Ackman is gone,” Johnson said.
Following the report that Ackman was short Herbalife, the stock tanked. The shares were last down more than 12%.
Ackman will give his short thesis tomorrow at a special Ira Sohn conference in Midtown Manhattan tomorrow. We will be there covering Ackman’s presentation so check back with Clusterstock for updates and coverage.