Herbalife shares slide on shorting concerns
Herbalife Ltd.'s shares fell sharply for the second day following the hedge fund manager William Ackman's critical presentation on the nutritional supplements company.
Ackman, founder and CEO of Pershing Square Capital Management L.P., says he has been shorting the company's stock for several months and that he thinks Herbalife is a pyramid scheme. Short sellers earn money when a stock declines.
Herbalife calls the claims "bogus" and is urging regulators to investigate what it claims are attempts to illegally manipulate its stock.
Shares fell nearly 9 percent to $34.04 in afternoon trading Thursday. This follows a 12 percent drop Wednesday when news of the short position and other claims were disclosed.