Hedge fund manager Bill Ackman has reportedly promised to pay a former Herbalife executive $3.6 million in exchange for information on the nutrition company’s activities.
Ackman, whose New York-based Pershing Square Capital Management has heavily shorted Herbalife, told ABC News that it has already paid ex-Herbalife executive Giovanni Bohorquez $80,000 because “it was the right thing to do.” The agreement was established in June 2013 that required both parties to keep the deal a secret.
However, Bohorquez —who left Herbalife in 2011 denied--that he was being paid by Ackman in an on-camera interview with ABC in December and recently told the news outlet that he did not disclose the agreement earlier because he had not invoked the provisions at the time and so had not yet collected any money.
This is not the first time Ackman has launched an attack against Herbalife. Herbalife shares fell by more than 2% last month after Ackman accused it of carrying illegal operations in China. In 2012, the hedge fund manager revealed that that he was shorting Herbalife, calling it a “pyramid scheme” and criticized the company for inflating the suggested retail price of its products and overstating its retail sales in public filings.
Founded in 2004, New York-based Pershing Square manages $10 billion in assets.