Shares of Herbalife were inching upward Wednesday even after billion activist investor Bill Ackman said that the company’s business model is on a track to disappear. Ackman’s hedge fund, Pershing Square unveiled a $1 billion short position against Herbalife in December 2012. On a conference call with Pershing investors, Ackman said that Friday’s ruling by the Federal Trade Commission — which stated that the company must pay a $200 million fine and restructure its recruiting and sales businesses — has effectively shut down the company and investors just haven’t realized it yet. In response to the FTC’s decision, Herbalife CEO Michael Johnson said the settlements are an acknowledgment that our business model is sound and underscores our confidence in our ability to move forward successfully.
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