Herbalife Stock Plummets Ahead Of 20/20 Expose

Herbalife Ltd. (NYSE:HLF)'s stock price had been recovering in recent weeks after bulls got over the initial shock that the Federal Trade Commission has launched a probe into the multi-level marketing firm’s business practices, but all that ground was lost again today after Fox Business News journalist Charlie Gasparino tweeted that ABC’s 20/20 intended to run a segment making similar allegations to those of hedge fund manager Bill Ackman, specifically that the company makes fraudulent claims to recruit distributors and acts more like a pyramid scheme than a legitimate business.

20/20 may have found a whistleblower for Herbalife

“Company officials...