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FBN's Charlie Gasparino on the latest on the Herbalife, Ackman battle.
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It's -- okay Herbalife came out swinging today to refute charges made by short seller bill -- -- Reassure investors that the company is not at pyramid scheme.
What happened shares went down Fox Business senior correspondent Charlie guess things have stories are.
So far.
The mister Johnson CEO of of Herbalife -- -- days there is Walsh the president had not made the sale to investors that.
That actually is wrong but let's get a couple -- we'll get into an adult little bid to religious -- to a -- sort of interest -- headlines at the Fox Business Network.
Has been able to -- number one David -- significant.
Eight.
Figure retainer that's the famed attorney wow -- in -- earlier in the week that he's been retained by Herbalife for possible litigation against act when.
Significant eight figure retainer -- have these shows a bit like Hank Greenberg secondly yep time to work on that he's the Milken Hank Greenberg for -- yeah and Herbalife.
We're gonna talk today is -- by the way -- and -- we're gonna ask about this but from what I understand.
Significant eight fabulous studio that's that does the president it's mr.
Johnson -- -- his first thing you.
He looks like my old boss Mark -- -- usually that's all that's what I remember -- thought Charlie Italy it is for Chicago and -- -- -- -- bill act would.
We should point out was barred from the Herbalife meeting barred units -- -- company told them.
I have an entity that it would yes they can't because that's what he's a shorts it would not investor doesn't own right -- you buy one share show up.
Like I like that only regulated caliakra every meeting Edith whatever Davidson -- -- -- CEOs but that's big bargain for the meeting -- and guess worries right now -- scuba -- so I just wanna get that strikes rapper is it easy is issuing statements from Burma telling us.
Doug Fox does network and everybody else that he's gonna help -- issue questions to Herbalife basically what he believes -- -- -- -- led the having misled the public today adjourn this meeting is -- issue questions.
Further questions about their business model which he obviously.
-- is a fraud we should point out that not bad -- and is telling people that he's bracing for possible legal action from Herbalife.
Odd that the company's Wayne what's known as tortuous interference that there and he's actually interfering with their business model we should point out that -- -- major distributor has.
Backed out of Herbalife so that's how do you get to -- -- fears they don't have distributors.
Yeah you know the multilevel marketing you have to generators very obvious and as I said does Walsh is scheduled to be interviewed with us let's see if he goes if he chickens out I doubt it but.
-- -- -- -- -- -- -- With the and the basic presentation was about the fact is that multi -- marketing or is it a pyramid scheme they came -- they tried to make their case you've been discussing this all -- in the essential difference out of the -- how much revenue for what -- -- of -- -- -- world -- -- -- talk -- What is a -- but I like to what is a pyramid -- okay appear -- -- -- it is a legal definition.
After Federal Trade Commission has a hold the finish -- this.
Pyramid scheme is that you have a company that makes money just by distributing products right so and so the -- so fewer disturbing you pay the company a fee.
Right but not by selling the products it's -- skiing because.
At some point if you can't sell the products to distributors say we're not gonna do -- any -- get more awards for recruiting other -- -- but it's more hot of those members says it was selling the product but it stops -- but it but it stops that's the problem investors put money into the company.
But at some point you stop getting distributors right because there's no products to sell so the company implode.
That's what act that is saying that's a specific legal definition.
Herbalife -- seen it really does sell stuff although I will tell you one of the problems that they had today is I never saw the real breakdown in sales and -- we you get the impression they do have lots distributors but -- all over the world China.
Every place else.
But you don't get the impression when you listen to them today that they have that they are that they are actually striking gold -- those -- are actually selling.
Shakes I mean you know listen to be honest which I don't you -- yeah he build the business model selling protein shakes.
And -- I drinkable all the time looking for -- learning more about this okay throughout the afternoon because Charlie is you know.
You want to keep it here on fox business for his interview with Herbalife president Dennis -- Hoping -- that around 3 PM eastern on countdown to the closing bell thanks again turning.
