Hedge Funds

Ackman promised Herbalife whistleblower $3.6M: ABC

Bill Ackman
Scott Eelis | Bloomberg | Getty Images

Hedge fund manager Bill Ackman promised to pay a disgruntled ex-Herbalife executive as much as $3.6 million over the next 10 years if he lost his job after providing the U.S. investigators with inside information on the firm, ABC News reported Tuesday.

The Pershing Square Capital head has already paid the former executive, Giovanni Bohorquez, $80,000 since he left Herbalife in 2011, the report said, citing the informant's lawyer.

"It was the right thing to do," Ackman told ABC News.

In December 2012, Ackman said Pershing was betting against multilevel-marketing company, shorting it by more than $1 billion.

Last week, Herbalife was hit with a shareholder class action lawsuit that accused Herbalife of failing to disclose to investors that its operations were based on a pyramid scheme, according to Reuters.

Click here to read ABC News' full report.