Shares of nutritional supplement-seller Herbalife are ripping today.
The stock was last trading up more than 5.8%.
Mid-day yesterday, the New York Post’s Michelle Celarier reported that the Federal Trade Commission told consumer groups that it found some of Herbalife’s practices “disturbing.”
The FTC didn’t tell those in attendance at the meeting if they were launching an investigation, the Post’s report said.
Then, after the market close yesterday billionaire investor Carl Icahn, who is long the stock, sat down with CNBC host Scott Wapner at the Delivering Alpha conference.
Icahn, who is a long-time rival of fund manager Bill Ackman, said that he hasn’t sold a share. He said that he has bought more of the stock.
Herbalife is the company that Ackman is famously shorting. Ackman, who runs Pershing Square Capital Management, is shorting a billion dollars worth of the stock. He believes the company is a “pyramid scheme” that targets lower-income people and that regulators will be induced to investigate it.
Since December 18, the trading session before Ackman confirmed his short position, shares of Herbalife have risen more than 22%.
Check out what the stock is doing today:
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