Bill Ackman will be happy when he wakes up today.
Shares of Herbalife — the company on which he has a massive short position — are getting crushed in the pre-market.
Blame the New York Post for the selloff.
Michelle Celarier at the paper is reporting that the company is subject to an FTC investigation:
Embattled Herbalife is feeling the heat — and this time it isn’t coming from a hedge-fund mogul. The Los Angeles-based distributor of nutritional products is the subject of a law enforcement investigation, The Post has learned. The existence of the probe emerged after the Federal Trade Commission, responding to a Freedom of Information Law request by The Post.
It’s not clear at all from the report if anything will come of this.
Basically there have been a lot of complaints over the years from people unhappy with the product/service.