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@CGasparino: FBN NEWS: Ackman believes he will be sued as early as thursday by herbalife; http://t.co/7y7LyS0p

Activist investor William Ackman is bracing for possible litigation from Herbalife (HLF), the nutrition company that he has labeled a “pyramid scheme” with a stock price that should fall to “zero,” FOX Business has learned.

Ackman’s attorneys believe the possible lawsuit could be filed at or before Herbalife is scheduled to hold its much-anticipated investor day in New York on Thursday.

At the heart of Ackman’s accusations is the charge that Herbalife makes the vast majority of its money through opaque deals with distributors who pay Herbalife fees rather than through the actual sales of products.

Ackman is calling for the Federal Trade Commission to close down Herbalife, alleging it’s an illegal pyramid scheme that will eventually implode once the company runs out of distributors to attract.

Read more: http://www.foxbusiness.com/investing/2013/01/08/ackman-braces-for-legal-battle-over-herbalife/#ixzz2HTRi2ati