Source: Winston-Salem Journal, N.迷你倉新蒲崗C.Aug. 14--The Herbalife Ltd. public-relations saga took another twist Tuesday when the New York Times reported on a product safety issue the company had at its California plant in early 2011.The newspaper reported there were at least two examples of fine shards of metal showing up in its Formula 1 nutrition shakes when they came off a production line. The line is similar to what Herbalife plans to operate at its Winston-Salem plant, which is expected to open in mid-2014.The company told the newspaper for the article, and reaffirmed Tuesday in a media statement, there is no evidence that any contaminated product was shipped from the factory and reached consumers."The California state food and drug authorities have visited the plant, conducted a regular audit and provided a report to the FDA stating no serious violations," Herbalife said.However, The New York Times said that "still, after the factory was back up and running, questions lingered about compliance with overall regulations and industry standards at the plant.""The FDA told the Times that a company would not need to contact the agency if the company was confident it had quarantined its contaminated products," Herbalife said. "There have been no consumer complaints relating to these incidents."Herbalife linked the source of the article to "a disgruntled former Herbalife employee whose efforts, as the newspaper noted, are being funded by hedge-fund activist Bill Ackman." The employee, whom The New York Times didn't identify, obtained the documents before leaving Herbalife in 2011. The employee has requested whistle-blower status from the Securities and Exchange Commission."We believe this story is yet another example of Mr. Ackman's desperation," the company said. The New York Times reported Ackman already may have lost at least $400 million of his $1 billion gamble on shorting Herbalife 迷你倉出租tock.Analysts interviewed by CNBC on Tuesday they were not concerned by the newspaper article."I'd put this in the interesting but who cares category," Stephen Weiss of Short Hills Capital said."We see this with consumer goods. Every day you see recalls with cars. It just doesn't matter unless they show there's a continued pattern of abuse and safety issues."Herbalife's financials and its share price have been challenged since December by Ackman, who accuses the company of operating as a Pyramid scheme. Ackman operates Pershing Square Capital Management LP. Company officials say they believe Ackman's accusations are "inaccurate and misleading."Shortly after Ackman made his initial accusations Dec. 19, Herbalife's share price fell to a 52-week low of $24.24. The stock has rebounded primarily because of the stock-buying support from other hedge-fund activists, primarily Carl Icahn, who holds a 16.5 percent ownership stake, according to Bloomberg News.The share price closed Tuesday down 94 cents to $65.33.Ackman has fired several salvos at Herbalife since, some appearing to be carrying less weight with investors after Herbalife's strong quarterly financial showings.For example, Ackman has been holding meetings with the New York Attorney General's office and the Securities and Exchange Commission in hopes of persuading them to pursue an action against the company.Herbalife is spending $130 million to buy and renovate the former Dell Inc. plant in Winston-Salem. Company spokesman Julian Cacchioli said Tuesday that Herbalife remains on pace to hire 250 full-time employees by year's end and have a workforce of 500 by the time the plant reaches full production in July.rcraver@wsjournal.com(336) 727-7376Copyright: ___ (c)2013 Winston-Salem Journal (Winston Salem, N.C.) Visit Winston-Salem Journal (Winston Salem, N.C.) at 2.journalnow.com Distributed by MCT Information Services儲存倉
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