Herbalife's shares are up 14 percent year-to-date.
Ackman did not disclose how he knows that Herbalife's executives are looking for independent legal representation, saying, "We know this through a source we deem reliable."
April 13, 2015 -- Investor William Ackman, whose company made a $1 billion short bet against Herbalife in 2012, said at a investor summit that Herbalife's top executives are hiring lawyers in response to government investigations. Ackman claims Herbalife is a pyramid scheme where representatives earn more money by recruiting new participants than they do by selling product.
