Pershing Square Capital Management
Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2015
Valeant investment controversy
Pershing Square's large investment in Valeant Pharmaceuticals drew criticism as the company faced questions concerning pricing, accounting, distribution relationships and governance. The investment subsequently produced severe losses and became a prominent example of the risks of concentrated activist investing.
2012
Herbalife pyramid-scheme allegations
Pershing Square's public allegation that Herbalife was a pyramid scheme became a major controversy because Ackman had a substantial short position and promoted the thesis publicly. Herbalife denied the allegations. A later Federal Trade Commission settlement required changes to Herbalife's business practices, but did not constitute a blanket confirmation of every claim made by Pershing Square.