Shares of Herbalife have tumbled again today.
The stock was last trading down more than 8%.
The New York Post’s Michelle Celarier just published an article about Chinese media outlet First Financial Daily having investigative report on Herbalife. According to the Post, that article in China questions whether Herbalife’s business practices are in accordance with Chinese laws.
The report in China is old, though.
It was from last August, according to the Post, which says it’s only recently being noticed.
Herbalife is a multi-level marketing company that sells nutritional products such as weightloss shakes and supplements.
MLM NuSkin was recently the subject of a negative article in China that questioned its marketing practices. NuSkin’s stock fell on that report.
Shares of Herbalife closed lower yesterday after Massachusetts Senator Edward Markey sent letters to the FTC and SEC calling on the regulators to investigate Herbalife’s business practices.
Herbalife is the stock that hedge fund manager Bill Ackman of Pershing Square is short. Ackman has publicly called the company a “pyramid scheme” and he thinks regulators will shut it down.
Herbalife has refuted his allegations.
Not everyone in the hedge fund world agrees with Ackman either. His long-time rival Carl Icahn is one of the biggest shareholders of Herbalife. Icahn bought the stock after Ackman gave a 342-slide presentation about Herbalife in December 2012.
Icahn has publicly said the he continues to think the company has a great business model and that it’s undervalued.
Yesterday, Icahn told Fox Business Network’s Charlie Gasparino that he hasn’t sold a share of his massive Herbalife stake.
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