A grand jury will decide whether hedge fund billionaire William Ackman will face trial on stock-manipulation charges, according to the Hartford Courant. Ackman has been working to prove that Herbalife is “one of the greatest frauds of all time” and that it “preys on low income communities.” He also wants to prove he was right when he made a billion dollar bet against Herbalife (HLF) stock.
But has Ackman–who’s promised to take this “short to the end of the earth”–taken it too far? The FBI and federal prosecutors have been asking questions, trying to assess whether Ackman deliberately made–or paid others to make–false statements about Herbalife that would cause the stock to drop. If so, that’s illegal stock manipulation. Ackman says Herbalife is a pyramid scheme. He’s been frustrated that the stock remains viable.