Company receives a Civil Investigative Demand from FTC

Herbalife announced it received today a Civil Investigative Demand (CID) from the Federal Trade Commission (FTC).

The company has acknowledged the demand and says it “welcomes the inquiry given the tremendous amount of misinformation in the marketplace and will cooperate fully” with the investigation.

This is no doubt a result of pressure from billionaire short-seller Bill Ackman who has been reported heavily on in this blog. Ackman has a few friends in high places and is pulling out the stops to kill the company. As has been predicted in the past, he isn’t likely to win and is just building a final case for his own major losses.

“I actually think this can be a good thing overall and a turning point in the Ackman saga,” said Momentum Factor Founder & CEO Jonathan Gilliam. “Why? Because I believe Herbalife will prevail and the industry can be done with this greedy wall street opportunist once and for all.”