New York • Hedge fund manager Bill Ackman said he will hold a presentation Tuesday that will prove 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 alleges that the direct seller makes most of its money from recruiting new salespeople rather than selling its supplements and weight-loss products.
Herbalife has denied the charges.
Ackman holds a "short" position in Herbalife, which means that he is betting the company's stock will drop. If it does, he will profit from it.