Bill Ackman Reveals Internal Video That 'Proves Herbalife Is Basically A Pyramid Scheme'

The long running feud between Pershing Square Founder, Bill Ackman, and Herbalife Ltd. HLF took a dramatic turn today when Ackman revealed on Bloomberg that he is possession of an internal video from 2005 that he obtained, which shows that Herbalife is nothing more than a pyramid scheme.

“So, we have actually come up with some new stuff. Believe it or not on Herbalife we always have something new and we always learn something new and what has changed is that a lot of former Herbalife employees, top distributors are going to state evidence  and they are also coming to Pershing Square,” Ackman said.

He continued, “So, we got a very interesting video that was filmed by Herbalife […] about October of 2005, you’ll say oh that’s nine years ago, but wait till you see the video and it’s a video of one of the top Herbalife distributors, I think he is in the top 10 talking to other top distributors and members of the board of directors, several senior executives of the company who were, who are now senior vice presidents of Herbalife and he is talking about how herbalife is basically a pyramid scheme.”

Those of you interested in watching the video that Ackman discussed, can watch it here.

The video basically shows Stephan Gratziani, a Herablife Chairman’s Club Member, speaking at a Herbalife distributors meeting and  making statements such as, “We sell people on a dream business that they can make it, yet deep down inside what do we really know? Yeah, we know the reality of that most of them are not going to make it.”