DeSimone appeared on “Squawk on the Street” to rebut charges Ackman has made about the multi-level marketing company, saying that the hedge fund manager’s claims of fraud were “outrageous.” He staunchly defended Herbalife’s product and business model, even as regulators probe the company.
“There’s no doubt he’s missing the real analysis, the real research,” DeSimone told CNBC. “What he’s missing is that fundamentally millions of people use the product and enjoy the product.”
For more than a year, the company has been in the crosshairs ofwho steadfastly insists Herbalife is a “pyramid scheme.” On Monday, Ackman told CNBC he was attempting to persuade Carl Icahn to abandon his investment in the company.
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Several federal agencies and some state attorneys general are investigating the nutritional supplement company, which has repeatedly said its business practices are sound and legal.