Bill Ackman intensifies battle against America's esteemed universities

A previous version of this story was featured in the CNN Business Nightcap newsletter. To receive it directly in your email, sign up for free, here.

Bill Ackman is used to getting his way with institutions, and he's also known for persisting when they don't comply.

The hedge fund managers have developed a signature investing strategy of purchasing shares in a company and then using online social activism to pressure its leaders into complying with their demands. One example of this is Ackman, who has gained a reputation as a social media loose cannon for sharing controversial and contrarian opinions on the X platform, formerly known as Twitter. This includes expressing support for individuals such as Kyle Rittenhouse and Sam Bankman-Fried, which has stirred controversy.

Three months ago, the plea for college leaders to take a stand against antisemitism has evolved into Ackman's mission to "save" his alma mater, Harvard. He has gathered a group of right-wing social media supporters who oppose diversity, equity, and inclusion efforts, and are fervently pro-Israel.

In October, Ackman expressed his dissatisfaction on Twitter with the handling of student protests over the Israel-Hamas war by the leaders of Harvard, MIT, and the University of Pennsylvania. Their mishandling of testimony before Congress sparked public outrage and prompted Ackman to push for their removal from office.

The Free Beacon, a conservative news outlet, alleged that Harvard's president, Claudine Gay, had committed plagiarism. This accusation was used by Ackman as justification for replacing Gay. Gay resigned from her position earlier this month due to ongoing harassment, including death threats, racist language, and targeted harassment near her home.

At that time, it appeared that the scandal had ended, but Ackman persisted in stirring up controversy, directing his attention towards the president of MIT. She had also faced criticism for her congressional testimony, which did not unequivocally denounce a lawmaker's hypothetical question about the "calling for the genocide of Jews" as a form of bullying and harassment on campus. (MIT has strongly supported its president, Sally Kornbluth.)

A spokesman for Ackman did not respond to a request for comment.

Plagiarism scandal deepens

Last week, Business Insider infuriated Ackman by publishing two stories that accused his wife, former MIT professor Neri Oxman, of plagiarizing parts of her doctoral thesis, including copying content from Wikipedia. The report highlighted similarities between the errors Oxman was accused of, such as missing quotation marks and improper citations of other authors, and those made by Gay.

Oxman, who departed from MIT in 2020, admitted and expressed regret for four cases of improper citations that were reported by BI on Thursday.

She has not yet addressed a second report from the outlet, which was published on Sunday, identifying 28 additional alleged instances of plagiarism. A spokesperson for Oxman did not respond to CNN's request for comment.

CNN has not verified the Business Insider report on its own. Ackman has criticized MIT for allegedly being the source of accusations against Oxman, as well as Business Insider for supposedly violating the family's privacy by allowing media scrutiny.

Ackman faced widespread criticism for breaching ethical standards by publicly calling for the identification and blacklisting of students affiliated with groups that attributed blame to Israel for the October 7 attacks by Hamas. Additionally, he has also joined the fight against plagiarism by announcing plans to review the work of BIs reporters and staff, as well as every current MIT professor, its president and governing board.

While it's evident that Ackman is passionate, he has not fully explained in numerous lengthy and defensive social media posts the specific actions he plans to take to address the issues he has identified in higher education and media. Nevertheless, he has characterized this battle as "the most significant one I have ever undertaken."

A history of holding on

Ackman, the CEO and founder of Pershing Square Capital Management, has achieved numerous victories as a prominent activist investor on Wall Street. However, his reputation continues to be marred by his unsuccessful $1 billion short of Herbalife.

Back in 2012, Ackman made a bold move by taking a short position against the dietary supplements company, alleging that it was operating fraudulently. Initially, he justified his actions as being based on ethics.

However, a rival activist investor, Carl Icahn, took the opposite position and enthusiastically supported the company's stock as loudly as Ackman criticized it. Their public dispute regarding Herbalife, including a particularly memorable on-air confrontation on CNBC in 2013, became legendary on Wall Street.

Ackman persisted for six years, long after it was apparent to others that he would suffer significant losses on the bet.

Ackman's commitment to the Herbalife bet, among his other bold moves, showcases his unwavering determination when he believes there are ethical or moral concerns at stake. He appears willing to endure significant financial losses rather than relent on his principles. Given his history, it's likely that Ackman's vocal stance on social media is not just for show. With his resources, he has the means to prolong his crusade indefinitely.