Ackman outspent by Herbalife in lobbying battle

[dmcowen674]

3-9-2014

http://finance.yahoo.com/news/ackman-outspent-herbalife-lobbying-battle-190240478.html

Ackman outspent by Herbalife in lobbying battle



Hedge fund manager William Ackman, who is betting $1.16 billion that Herbalife is a fraud, spent $264,000 last year on lobbyists to press his case against the company, according to government documents filed in recent weeks.


That amount is dwarfed by the nearly $2 million Herbalife spent in 2013 on federal lobbying as the nutrition and weight loss company fought the billionaire investor's claims it runs a pyramid scheme.



In an illegal pyramid scheme members earn more for recruiting new members into the scheme than for selling the products outside the network.

Ackman has accused Herbalife of unfairly targeting minorities.

The battle for the future of Herbalife is heating up this year with each side trying to press its case with Washington lawmakers as well as regulators, who may ultimately control the company's fate.

 

[dmcowen674]

Look at all that money being thrown around by rich Politicians over this.

 

[AViking]

I didn't understand how Herbalife was still around but I guess this explains it partially.

 

[norseamd]

do they sell cheap shit?

 

[AViking]

I've been suckered into going to a number of their seminars. It's basically a pyramid scheme where your friends recruit you to sell. The idea is then that you are to recruit new people as well. What seems to happen is that all these people then sell to each other and the people at the top make some money but nobody else does. I don't know how it really works long term but it felt an awful lot like that "mail these 10 people a dollar and then replace the bottom name with your name at the top" type pyramid scheme.

 

[z1ggy]

do they sell cheap shit?

No actually their products are quite expensive.

I buy some of it...I'm still not sure if I believe it, but apparently the environment which it is made it in more controlled than that of the large bulk protein manfs.

If anything else, it tastes about 10x better than most other protein mixes.

Still not convinced it works any better though. It sure is expensive finding out..

 

[KB]

Wow if you have to spend that much to prove you are not a pyramid scheme, then there is a good chance you are.

 

[Jimzz]

I didn't understand how Herbalife was still around but I guess this explains it partially.

That and getting dumb people to sell products for other dumb people and over and over.
You know, like a pyramid scheme.

 

[hal2kilo]

I've been suckered into going to a number of their seminars. It's basically a pyramid scheme where your friends recruit you to sell. The idea is then that you are to recruit new people as well. What seems to happen is that all these people then sell to each other and the people at the top make some money but nobody else does. I don't know how it really works long term but it felt an awful lot like that "mail these 10 people a dollar and then replace the bottom name with your name at the top" type pyramid scheme.

Sounds just like Amway.