In December 2012, activist investor Bill Ackman placed a $1B short on Herbalife stock and immediately launched an unprecedented campaign to influence regulators and elected officials in an effort to destroy the company. At the time, Herbalife, a highly regarded but little known direct-selling nutrition company, did not have the infrastructure for the fight.
Herbalife hired SKDK in early 2014 to coordinate the defense and counter attack. First and foremost was creating a campaign that put the people of Herbalife – small businesspeople who care about the health and nutrition of their friends and neighbors – out front.
SKDK managed a campaign that included: a proactive and defensive communications strategy; coalition support for a concurrent lobbying campaign to educated elected officials; digital, print and television advertising; third party engagement; and social media.
A multi-year investigation by the FTC, prompted by Ackman supporters, concluded in July 2016, and Herbalife has been cleared of the pyramid scheme allegations.
Meanwhile, after a prolonged defensive campaign, Ackman has finally lost credibility with the public and his investors. With the FTC’s favorable ruling, and SKDK’s help, Herbalife is now able to move forward as a company and focus its attention on growing its successful business.
For its work with Herbalife, SKDK won the Holmes Report’s 2017 SABRE Award for Crisis Management Excellence in North America.
The siege of HerbalifeRead Article
The Motley Fool
FTC: Herbalife Is Not a Pyramid SchemeRead Article
Investors Pull $600M After Ackman’s Bad BetsRead Article
The FTC got it right on Herbalife settlementRead Article
Bill Ackman Can’t Manage to Destroy HerbalifeRead Article
Ackman's Vision of Pyramid Scheme at Herbalife Just a MirageRead Article
Bill Ackman is getting obliteratedRead Article
Herbalife ruled not a pyramid schemeRead Article