Herbalife had a rough start to the week with shares falling early Monday after the New York Post reported that the company would be investigated by regulators.
However, shares rallied, finishing the day in the green after the company said, "Other than the voluntary dialogue with regulators, which we communicated on our January investor day, we are unaware of any other regulatory interest and/or investigation. We are demanding a correction from the NY Post."
The paper initially reported that it obtained documents from the U.S. Federal Trade Commission (FTC) that referenced a law enforcement investigation as well as pending law enforcement action, although no details were provided. Regulatory concerns have been an overhang for Herbalife since December when Bill Ackman of Pershing Square revealed that he had a significant short position in the company, calling its business a “pyramid scheme."
Herbalife (HLF : NYSE : US$35.54), Net Change: 0.47, % Change: 1.34%, Volume: 20,348,138