The following article reported by Reuters recently shares the Ackman vs Herbalife fiasco in a rather objective manner. Ultimately, his claims aren’t resonating with Herbalife members or nutritional club owners.
New York hedge fund manager William Ackman says Herbalife is a pyramid scheme that exploits the poor. He has taken a $1 billion bet against the company’s stock and spent millions on research to attack the nutritional supplements seller, including making a video showing former distributors who claim they were deceived and lost money trying to sell its products.
Yet a visit to some of the clubs that have been set up to dispense the company’s shakes, teas and other items, largely to the Hispanic community in the U.S., shows that it has fans. These are consumers who stress their health has improved and distributors who are thankful to have the opportunity to run their own businesses.
In conversations at 10 such clubs that Reuters reporters visited in recent weeks in the Los Angeles area, New York and Newark, New Jersey, more than 20 people said they had lost a substantial amount of weight while consuming Herbalife products. These claims could not be verified by Reuters but if true the comments cast a favorable light on