Ackman, who has called Herbalife a pyramid scheme, expects the shares will actually hit 0.
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The definition of a pyramid scheme is seemingly straightforward: Cash comes in from recruits.
Ackman may end up being right about Herbalife, a company he says is operating a pyramid scheme.
Ackman has gone incredibly public about his short position on Herbalife which he called a pyramid scheme.
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In late 2012 he announced a massive short position in Herbalife, declaring the nutritional supplement company a pyramid scheme.
What I can say is that a pyramid scheme, by definition, is unsustainable.
Whether Ackman is proved right or not, the way that CEO Michael Johnson has been compensated resembles a pyramid scheme.
Late in 2012, the activist investor announced a massive short position in Herbalife, calling the nutritional supplement company a pyramid scheme.
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After 18 months of due diligence, we have concluded that it is a certainty that Herbalife is a pyramid scheme.
Understandably, the line between what constitutes a pyramid scheme and a legitimate enterprise is not always as clear as one might assume.
The activist investor turned up the heat in late 2012 announcing a massive short position in Herbalife, calling the nutritional supplement company a pyramid scheme.
Tuesday's offer comes a few months after the Securities and Exchange Commission in the United States concluded Usana's marketing model is not a pyramid scheme.
During the CNBC fight, Ackman told Icahn he is free to buy the company if he is so convinced it is not a pyramid scheme.
Herbalife, which uses a network of distributors to sell its nutrition and weight loss products, has been fighting off claims that its business amounts to a pyramid scheme.
Shares of Herbalife were off another 6.7% , a day after hedge fund manager Bill Ackman gave an exhaustive presentation arguing why the company is a pyramid scheme.
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He allegedly has now confessed that this was achieved by creating a pyramid scheme in which existing clients' returns were topped up, as needed, with money from new investors.
Ackman, who has made a massive short bet against the company, announced publicly in December that he believes Herbalife is a pyramid scheme that the SEC will eventually shut down.
Herbalife, a nutritional supplement company that uses a multi-level marketing approach, was labeled a pyramid scheme by Ackman days before Christmas, dropping the stock down more than 15 percent.
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He made news in early 2013 by taking a position in Herbalife, the nutritional supplements seller, shortly after another prominent hedge fund manager, William Ackman, called the company a pyramid scheme.
If a company manages its contracts poorly, it can soon start to resemble a pyramid scheme, in which prepayments from new orders become vital to finance the completion of old contracts.
At the Harbor Investment Conference Feb. 13, Ackman said that there will be traders who profit from rallies in Herbalife shares, but that he remains resolute in the belief the company is operating a pyramid scheme that will ultimately be targeted by regulators.
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The company, set to issue fourth-quarter numbers next week, has not responded to questions Ackman raised following its rebuttal to his Dec. 20 presentation, and the hedge fund manager said any business that is not a pyramid scheme could answer such questions within 24 hours.
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In other words, Loeb is betting against William Ackman, the hedge fund manager who took to a New York stage in December to announce a massive short bet that he said consisted of 20 million shares against Herbalife, which he called a Pyramid scheme.
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The Albanian government is still reeling from the effects of an escalating scandal associated with a failed pyramid scheme that has deprived a majority of Albanian families of a part or all of their life savings.
For that, whether he has exposed a massive pyramid scheme or not, he should be cheered.
Hours after the announcement, police closed 59 offices of DMG Grupo Holding, which evolved from a simple pyramid into a sophisticated investment scheme with a claimed 200, 000 clients.
Herbalife Ltd. (HLF) : One of the most controversial stocks in the market, this weight loss and nutritional supplement firm has been bashed by well-known hedge fund manager Bill Ackman as a sort of pyramid scheme business and defended by others, including fellow hedge fund guru Carl Icahn.
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Investigative columnist Jack Anderson was trapped in a Salt Lake City pyramid scheme.
The pyramid scheme is a serious accusation that we have studied closely with our advisors.
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Ms. Marvanova has represented some of the 1, 100 victims of a well-known Czech pyramid scheme from the 1990s who made large down payments for homes that were never built.
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