Ackman’s Attack on Herbalife Ripples Impacts Segment

Attacks on Herbalife’s business model aren’t new; the company, and other direct selling companies as well, has heard murmurs of “pyramid scheme” for years. What is new is the impact that these comments from hedgefund manager Bill Ackman are having on other direct selling companies.

Following Ackman’s comments earlier this month, Avon Products’ stock has fallen 3.5%, while Nu Skin, which has had a stellar year, has seen its share price tumble 27%.