Shares of Herbalife Ltd. soared more than 9%, nearing a two-year high on Friday, after the company confirmed a ruling by the Federal Trade Commission that it is not a pyramid scheme and can continue to operate as a direct selling company without significantly changing its business model. In a separate settlement with the Illinois Attorney General, Herbalife agreed to pay $3 million to settle similar allegations. The ruling, first reported by The Wall Street Journal, ends a two-year investigation by the FTC that started after billionaire investor Bill Ackman revealed a large short stake in the company and claimed it was a pyramid scheme. In light of the ruling, Ackman rival and fellow billionaire investor Carl Icahn, who has long supported Herbalife, said the company raised his ownership limit to 34.99% from 25%. Shares of Herbalife were on track to open around $64.62 on Friday, which would put them on track for their highest closing price since July 28, 2014, when the stock closed at $67.48.
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