Herbalife Ltd (HLF - Snapshot Report) responded to the latest allegations by activist investor William Bill Ackman, hedge fund manager of Pershing Square.

Ackman, at the 13D Monitor Active Passive Investor Summit, made critical comments against Herbalife and stated that the top executives of the nutrition and supplements company were hiring their own lawyers, per Reuters.

In response, the nutritional supplements seller stated that the allegations of Ackman are quite predictable as his put options in Herbalife expire this Friday and therefore he is trying every tactic to drive down the share price. In fact, Herbalife noticed that Ackman has been accusing the company with something or the other, especially before the third Friday of each month, when certain options expire.

Herbalife has been in the spotlight for quite some time amid accusations by Bill Ackman that the company was running a pyramid scheme business model. Per this model, the company boosts business through deceptive marketing practices. The company has also been accused of making money by recruiting sales personnel and not from sales. (Read: Herbalife Faces Another Ackman Attack)

In Dec 2012, Ackman revealed a $1 billion short position in Herbalife’s shares and accused it of employing such means to further its business. Herbalife, on its part, has been denying the charges since 2012 and has full confidence in its business model. However, Ackman's back-to-back allegations have prompted investigations by the Securities and Exchange Commission, the Federal Trade Commission, the Federal Bureau of Investigation (FBI) and at least two state attorneys general.

But the company seems to have some streak of good luck lately as U.S. District Judge Dale Fischer in Los Angeles dismissed the lawsuit case in March citing insufficient proof to show that Herbalife conducted fraudulent activities. (Read: Herbalife Soars as Judge Dismisses Lawsuit)

Earlier, federal prosecutors and the FBI also started questioning affiliates of Ackman, and requested documents from people who were reportedly hired by him to campaign against Herbalife. (Read: Herbalife Up as Tables Turn on Ackman, FBI Probes Claims)

Herbalife has a Zacks Rank #3 (Hold). Herbalife is not the only company, which employs sales representatives to sell its products. Other multi-level marketing companies like Nu Skin Enterprises Inc. (NUS - Snapshot Report), USANA Health Sciences Inc. and Avon Products Inc. (AVP - Analyst Report) also follow the same model.