Here’s why plunging Herbalife shares have been halted
Shares in nutritional supplement company Herbalife have resumed trading some 13 per cent lower, after being halted.
They were halted after the US company received a Civil Investigative Demand (CID) from the Federal Trade Commission (FTC). Before that halt they were trading up by 4.5 per cent.
The company has said that it "welcomes the inquiry given the tremendous amount of isinformation in the marketplace, and will cooperate fully with the FTC."
Legendary investor Bill Ackman has repeatedly accused Herbalife of being a pyramid scheme, a charge the company has denied.
Last August Ackman asked regulators to probe a stake taken in the company by roval George Soros. He accused Soros of breaking trading rules over its investment in the company, alleging that Soros' move into Herbalife was flagged to hedge funds in order to drive up shares.