NEW YORK (AP) — Hedge fund manager Bill Ackman says that he will hold a presentation Tuesday that will prove that nutrition company Herbalife is a "fraud."
The announcement sent shares of Herbalife down more than 11 percent in trading Monday.
Ackman, the head of Pershing Square Capital Management, has been battling Herbalife since 2012, saying that the company is a "pyramid scheme." He says the direct seller makes most of its money from recruiting new salespeople rather than selling its supplements and weight-loss products.
Herbalife denies the charges.
Ackman holds a "short" position in Herbalife, meaning he is betting that the company's stock will drop and profit when it does.
In a TV interview with CNBC Monday, Ackman says he has hours of recorded video and audio that will prove his allegations.
Original headline: Ackman say he can prove Herbalife is a 'fraud'
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