Herbalife to pay $200 million to FTC to avoid pyramid scheme label
Herbalife Ltd said it would settle with the U.S. Federal Trade Commission for $200 million to avoid being labeled a pyramid scheme, a blow to hedge fund manager Bill Ackman who for years has been betting against the dietary supplements maker. Herbalife's shares were up 8 percent at $64.08 in premarket trading on Friday. Herbalife also said its board had cleared the way for billionaire investor Carl Icahn boost his stake in the company to up to 35 percent from a current 18.3 percent.
