Tesla Inc (TSLA)

[XFundManager]

Bill Ackman Just Accused Carl Icahn of Stock Fraud !

In a fresh attack on Herbalife, hedge fund manager Bill Ackman is accusing the company and its largest shareholder Carl Icahn of stock market manipulation.

Ackman, who has been betting against Herbalife stock for the past four years, made the allegations during a presentation to his investors Wednesday about why he was still shorting the nutrition products company even after Herbalife’s settlement with the Federal Trade Commission last week. The $200 million settlement appeared to dash Ackman’s hopes that regulators would declare Herbalife a pyramid scheme and shut it down.

Herbalife’s stock has soared 10% since the FTC agreement Friday, swelling Ackman’s losses on the bet to about $500 million, Fortune previously reported. But Ackman is blaming the company as well as Icahn for misleading investors on the nature of the FTC agreement in an effort to pump up the stock, which initially surged as much as 22% on Friday morning. Icahn, who currently owns about 18% of Herbalife, has made about $450 million in profits on the investment.

Ackman’s latest beef with Icahn—the two have been at odds for years, though seemed to call a truce two years ago on CNBC— stems from a statement Icahn released following Herbalife’s FTC announcement. In the statement Icahn declared that the FTC “concluded that Herbalife is not a pyramid scheme”—a statement that the FTC later disputed as “inaccurate.” In fact, the FTC did not explicitly conclude Herbalife was or wasn’t a pyramid scheme, with chairwoman Edith Ramirez saying only, “They were not determined not to be a pyramid.” That nuance has led to disagreement among Herbalife bulls and bears about what the FTC’s findings really mean.