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The Battle over Herbalife

Long or short, investors are making big bets.

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By: TOM BRANNA

Editor

Bill Ackman knows how to get attention. Back in December, the derivatives investor disclosed he was shorting Herbalife with a $1 billion bet. His move caused Herbalife’s share price to plunge from the high 30s to the low 20s. Ackman called Herbalife’s business model a pyramid scheme that relies on recruitment of new participants rather than sales of products, to generate profits. He vowed to spend whatever it takes to inform people about the company. Herbalife responded with an investor...

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