Herbalife (HLF) Director Accuses Ackman of 'Throwing Rocks' to Support Short

March 5, 2013 11:30 AM EST
Herbalife (NYSE: HLF) is getting more defensive chatter from one of its own.

According to Bloomberg, director Jeff Dunn said Pershing Square's Bill Ackman is just "throwing rocks" with his analysis and accusations that the company is running a pyramid scheme. He thinks Ackman's salvo is simply to keep shares down in support of his short position.

Dunn believes Herbalife is the "gold standard" in direct selling and that he wouldn't be there if he had questions about the company's operations.

Dunn is CEO at William Bolthouse Farms and former president at Coca-Cola (NYSE: KO).

Ackman acknowledged being short Herbalife last December, with his position than amounting to about 20 million shares. Herbalife has become a much-debated stock as Third Point's Dan Loeb and activist investor Carl Icahn have gone long on the stock.

Herbalife shares are down 1.8 percent on the session Tuesday.

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