Weight management product company Herbalife has hired a strategic adviser after hedge fund manager Bill Ackman revealed last week that he was shorting the company.
Bloomberg reported that Herbalife has enlisted Moelis & Co. to help the company re-position to the top after its shares declined 36% since Ackman, the founder and CEO of New York-based Pershing Square Capital Management, said he was shorting the stock on December 21.
eVestment reported last week that Ackman called Herblife a “pyramid scheme” and criticized the company for inflating the suggested retail price of its products and overstating its retail sales in public filings.
Michael Johnson, the CEO of Herbalife, fought back claiming that Ackman’s charge about Herbalife being a pyramid scheme is “bogus.” Herbalife is set to hold a meeting on January 10 “to respond in detail to the distorted, outdated and inaccurate information" from Pershing Square.
Pershing Square manages approximately $11 billion in assets.