The Securities and Exchange Commission has launched an insider trading investigation into trades of Herbalife by legendary hedge fund manager George Soros’ family office days after a complaint from Pershing Square Capital’s Bill Ackman.
The New York Post reported that a SEC lawyer has contacted at least one person who spoke with Soros Fund Management portfolio manager Paul Sohn, who oversees the firm’s investment in weight management product Herbalife.
The article also said that Ackman filed a complaint against Soros and unidentified co-conspirators, alleging that Soros Fund broke insider rules by tipping managers at other firms about its plan to buy shares of Herbalife.
Ackman made headlines late last year when he revealed that he made a $1 billion short against Herbalife, calling the company a “pyramid scheme.”
Soros Fund Management transitioned into a family office after it returned all outside capital last July to avoid reporting requirements under the Dodd-Frank Act.