{ "docId": "019dd923-622c-750b-8b9b-c1ba6b225076", "docSlug": "03a523e87675", "documentTitle": "Multiple (portfolio-level LP update: MDLZ, APD, ZTS, QSR, CP, HHC, VRX, PAH, NOMD, HLF short)", "authorId": "01_Pershing_Square", "authorName": "Pershing Square", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2016-04-26 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 64, "pageCount": 82, "prevPage": 63, "nextPage": 65, "slideType": "preempt_rebuttal", "function": "preempt_rebuttal", "density": "overcrowded", "nDataPoints": 0, "notes": "This is an activist short-seller slide (Pershing Square) framing regulatory risk as a catalyst for the company's collapse.", "elementsJson": [ "headline_text", "callout_box", "bullet_list", "paragraph", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9b-c1ba6b225076/64", "deckHref": "/decks/019dd923-622c-750b-8b9b-c1ba6b225076", "deckJsonHref": "/decks/019dd923-622c-750b-8b9b-c1ba6b225076.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9b-c1ba6b225076#slide-64", "components": [ { "bbox": null, "kind": "callout", "text": "Regulatory action appears forthcoming", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-e6e9-749a-ba91-f795f4a59cbc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.5, "x": 0.04, "y": 0.26 }, "kind": "list", "text": "Regulatory investigations nearing a conclusion", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9d669ac2-3625-48af-bcb9-04149cb0a953", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.6, "x": 0.04, "y": 0.71 }, "kind": "list", "text": "Vemma Complaint provides a potential road-map for Herbalife", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ba1518ea-d65e-4cc2-9449-2dc692bea310", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.87, "x": 0.09, "y": 0.76 }, "kind": "paragraph", "text": "Herbalife could not survive if the courts applied the same restrictions to Herbalife which they have imposed upon Vemma. Pershing Square has published a detailed side-by-side comparison on our website – FactsAboutHerbalife.com", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6a1caaac-2b9e-464a-9f66-c46c8d5c7245", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.87, "x": 0.09, "y": 0.31 }, "kind": "paragraph", "text": "In its 10K, filed February 25th 2016, Herbalife added a new disclosure about the U.S. Federal Trade Commission (FTC): The Company is currently in discussions with the FTC regarding a potential resolution of these matters...", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c9848790-de8d-4df8-adea-7028c8328964", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.87, "x": 0.09, "y": 0.58 }, "kind": "paragraph", "text": "We do not believe the FTC will deliver a \"slap on the wrist\" in light of the enormous harm Herbalife inflicts on its victims, which will continue if it is not forced to stop its pyramidal practices", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "caedf808-d1b1-4513-8914-8dfee0125601", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "The Company is currently in discussions with the FTC regarding a potential resolution of these matters. The possible range of outcomes include the filing by the FTC of a contested civil complaint, further discussions leading to a settlement which could include a monetary payment and other relief or the closure of these matters without action... Moreover, no assurances can be given that the outcome of these matters will not have a material adverse impact on the Company's business operations, its financial condition or its results of operations. — Herbalife Form 10-K, pg. 100", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-e6e9-749a-ba91-fa0cc8c6658d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.2, "x": 0.04, "y": 0.96 }, "kind": "source-note", "text": "Source: Herbalife Form 10-K.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "194f8a5f-4277-4a7a-b344-efb498dbe1c1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.92, "x": 0.04, "y": 0.18 }, "kind": "title", "text": "Regulatory action appears forthcoming", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "01abb93b-c7fd-40bf-b6aa-e1ae8dccecb6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.45, "x": 0.04, "y": 0.08 }, "kind": "title", "text": "Herbalife: It's a Pyramid Scheme", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f6979dbe-284c-45c5-965b-70b43e16f4ef", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "preempt_rebuttal", "slug": null, "matchId": "7299c35f-bec4-42f6-9ccb-9a8b67cfee58", "evidence": "Uses regulatory disclosure and legal precedent (Vemma) to argue against the company's survival.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }