The NY Post reported earlier today:
Bill Ackman wants to give Herbalife’s new head of compliance, Pamela Jones Harbour, a few pointers.
The billionaire activist and Herbalife’s biggest critic on Thursday fired off a 19-page letter to Harbour — who has been on the job just a month — telling her that she has her work cut out for her.
“Based on our extensive investigation over the past three years, we believe Herbalife operates the largest and best-managed pyramid scheme in the world,” David Klafter, a lawyer for Ackman’s Pershing Square hedge fund, wrote in the letter first reported by Reuters.
Harbour is facing an “immense” challenge as the company’s business will likely collapse if she does her job and acts in the best interests of consumers, the letter warns.
“You may find yourself at the fulcrum of choosing between protecting consumers or protecting the company. Based on our research, we do not believe you can do both,” Klafter said.
Herbalife’s declining sales in the US over the past two quarters indicate that is already happening, Klafter suggested.
Since Herbalife stunned Wall Street on Monday with lower-than-expected earnings and dismal projections, the stock has fallen about 30 percent, closing at $39.99 on Thursday.
While Herbalife has suggested