Earlier this month, Herbalife stock made a full recovery despite the unrelenting campaign that hedge fund investor Bill Ackman launched against the company in December. Shares in Herbalife traded above the price they brought prior to Ackman’s allegation that the nutritional supplements company operates a pyramid scheme.
Ackman’s fellow investor Carl Icahn has played a leading role in stabilizing and bolstering Herbalife’s stock. Earlier this year, Icahn stepped in as a major shareholder in Herbalife—a move closely followed by the addition of two Icahn representatives to its board of directors.
The company’s strong performance this week prompted a Forbes headline declaring “Carl Icahn And Herbalife Are Crushing Bill Ackman.” Investors have reacted positively to Herbalife’s comeback earlier this month, as well as the company’s Tuesday announcement of its new auditing firm, PricewaterhouseCoopers. Shares in Herbalife rose 10 percent Monday, followed by almost 5 percent Tuesday, putting the company’s shares up 53 percent in 2013.
