Short Seller Sues Banks, Icahn Over Support of Herbalife (HLF) (BAC) (JPM)

March 13, 2013 2:51 PM EDT
The Herbalife Ltd (NYSE: HLF) saga isn't over yet. Not even close.

According to Reuters on Wednesday, Daniel Ravicher, a New York lawyer and short seller of the stock, has taken up a lawsuit again three large banks as well as activist investor Carl Icahn. Ravicher is filing against Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC), and JPMorgan (NYSE: JPM) to pull back on $1.2 billion in financing for Herbalife.

Ravicher is also suing Icahn in a separate suit shortly after Icahn disclosed a 16 percent stock in Herbalife. Ravicher alleges that Icahn's move was based on revenge versus hedge fund manager Bill Ackman and not based on a sound investment decision.

On the banks, Ravicher alleges that they breached fiduciary duties to him as a shareholder by failing to withdrawal financing. He named 50 defendants in the suit, including CEOs of the three major banks.

Ravicher said he has lost about $75,000 on his short position, which was entered at about the same time Ackman announced his position last December.

Shares of Herbalife are down 2.5 percent Wednesday.

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scjrt on 2013-03-14 18:37:10
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Maybe Ravicher should be sued for shorting the stock and causing a loss to stockholders that were "long" on Herbalife.

brian on 2013-03-13 16:08:20
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Really, your filing a lawsuit against them because they bought stock.. News flash they have more to lose than your pathetic 75k dollars with the stock ownership they have. If your going to short a stock you need to man up to your loss that is the nature of the game.

Danny on 2013-03-13 15:04:12
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How is it possible that the court system can allow for such insane accusations. You short a stock, you are losing money and you the file a lawsuit against those who are buying shares? WHAT?

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