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Herbalife hires PricewaterhouseCoopers as new accounting firm after previous auditor resigns

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(GlobalPost/GlobalPost)

LOS ANGELES, Calif. - Herbalife Ltd. says it has hired PricewaterhouseCoopers to be its new auditor.

The nutrition company's previous auditor KPMG resigned last month after insider trading allegations against a rogue executive of the accounting firm. The former KPMG partner, Scott London, has been charged with conspiracy to commit securities fraud.

KPMG's resignation came at a sensitive time for Herbalife, which is in the middle of a fight between activist investor Bill Ackman and his rival, Carl Icahn. Ackman has publicly attacked Herbalife, saying its business model amounts to a pyramid scheme.

PricewaterhouseCoopers will re-audit Herbalife's financial records for fiscal years 2010, 2011 and 2012 and review the company's results for the first quarter of 2013.

Shares of Herbalife Ltd. are up nearly 4 per cent to $51.10 in afternoon trading.

http://www.globalpost.com/dispatch/news/the-canadian-press/130521/herbalife-hires-pricewaterhousecoopers-new-accounting-firm-a