KPMG said in a statement last night that it was informed the partner in charge of its audit practice in Los Angeles was involved in providing non-public client information to a third party, who then used that information in stock trades involving "several West Coast companies." The big four accounting firm said the partner was immediately separated from KPMG and that it is resigning two clients after concluding that the firm’s independence has been impacted. KPMG added it has informed the companies of its resignation. Herbalife, whose shares remain halted pending news, is considered a West Coast company despite having a corporate headquarters in the Cayman Islands. The New York Times reported that Herbalife will disclose today the resignation of KPMG as its auditor.
- Company Legal & Law Matters