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