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If You're An Herbalife Employee, Ackman Says You Should Quit

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Herbalife LTD. NYSE:HLF - If You're An Herbalife Employee, Ackman Says You Should Quit

Bill Ackman was a guest on CNBC and the topic of his Herbalife Ltd. HLF 1.6% short thesis was brought up.

According to Ackman, the U.S. government is "going to act soon" on Herbalife and "do the right thing." He added that the company has created "great harm."

Knowing that Ackman would be a guest on CNBC, Herbalife provided the hosts with a statement which said, "Herbalife has sustained a three-year unprecedented attack and has not only survived, but has thrived. We are in a much better place from an operations, personnel, governance and earnings perspective."

The statement suggested that "maybe it is just time for Bill to move on."

Related Link: Tilson: Herbalife Has Been A Pyramid Scheme Of 'Epic Proportions' For A Long Time

Ackman responded that the statement contains some errors. For starters, he suggested Herbalife's business has "deteriorated dramatically" and this is evident by Wall Street's full year earnings estimate of around $7.50 per share, while the company's guidance is calling for an earnings per share of around $4.25.

"My goal here was to shine a spotlight on the company," Ackman continued. "I think we have done a very good job doing that."

Bottom line, Ackman said, "This company has caused enormous harm and if you find yourself as a Herbalife employee today, my advice for you is that you leave the company because this is not going to be a good thing on your resume."

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