Herbalife names Pricewaterhouse new auditor
Herbalife hires PricewaterhouseCoopers as new accounting firm after previous auditor resigns
LOS ANGELES (AP) -- 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 percent to $51.10 in afternoon trading.