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Herbalife Issues Press Release On KPMG Resignation Which Is Unrelated To Herbalife Operations
The long overdue press release is out.
Herbalife (NYSE: HLF) today announced that KPMG LLP notified Herbalife on April 8, 2013 that KPMG was resigning, effective immediately, as Herbalife's independent accountant. KPMG stated it had concluded it was not independent because of alleged insider trading in Herbalife's securities by one of KPMG’s former partners who, until April 5, 2013, was the KPMG engagement partner on Herbalife's audit. KPMG advised the Company it resigned as Herbalife's independent accountant solely due to the impairment of KPMG's independence resulting from its now former partner’s alleged unlawful activities and not for any reason related to Herbalife's financial statements, its accounting practices, the integrity of Herbalife's management or for any other reason.
None of KPMG’s audit reports on Herbalife’s financial statements for the fiscal years ended December 31, 2010, 2011 and 2012 or KPMG’s audit reports on the effectiveness of internal control over financial reporting as of December 31, 2010, 2011 and 2012 contained an adverse opinion or a disclaimer of opinion, nor was any such report qualified or modified as to uncertainty, audit scope or accounting principles. In addition, at no point during the three fiscal years ended December 31, 2012 and the subsequent interim period through April 8, 2013 were there any (1) disagreements with KPMG on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which disagreement(s), if not resolved to the satisfaction of KPMG, would have caused it to make reference to the subject matter of the disagreement(s) in connection with its reports, or (2) “reportable events” as such term is defined in Item 304(a)(1)(v) of Regulation S-K.
As a result of the alleged insider trading activity by its now former partner and KPMG’s resulting resignation on April 8, 2013, KPMG notified Herbalife that KPMG’s independence had been impaired and it had no option but to withdraw its audit reports on Herbalife’s financial statements for the fiscal years ended December 31, 2010, 2011 and 2012 and the effectiveness of internal control over financial reporting as of December 31, 2010, 2011 and 2012 and that such reports should no longer be relied upon as a result of KPMG's lack of independence created by the circumstances described above. Herbalife’s Audit Committee and management continue to believe that the Company's financial statements covering the referenced periods fairly present, in all material respects, the financial condition and results of operations of the Company as of the end of and for the referenced periods and may continue to be relied upon and that the Company's internal control over financial reporting was effective during these periods.
As a result of the matters described above, Herbalife will be withdrawing the proposal to ratify the appointment of KPMG as Herbalife’s independent registered public accountants for fiscal 2013 originally planned to be submitted to Herbalife’s shareholders at Herbalife’s Annual General Meeting of Shareholders to be held on April 25, 2013.
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Um... Gold Bitchez?
Just went to check: It's all there.
I assume all of mine is still at the bottom of the lake
Would you like to lose 30 pounds in 30 days?
one rogue partner insider trading the stock... how very convenient.
LOL. SO they're releasing Enron's Jeff Skilling eh? Timing!
Dow 20k!
Is it time to get out the hat already? ;-)
Bullish!
Bitcoin spillover to PM's today? Man, those Japanese are really moving money around.....
Smells like CASH FLOW problems...
....like burning fiat.
Not that it will make a difference, but on every proxy I vote against the current accounting firm.
HLF halted, BTC hacked last week and volume at prices over $200 is 1/3 of the volume at under $100
Keep stackin' the real stuff, folks.
When the replacement auditor finds accounting irregularities, that'll be bullish
HP, Autonomy and Toilet and Douche throw the auditor under the bus style saga playing out again.
The ghost of Authur Anderson is smiling.
Of course, having a relationship partner who trades the clients stock illegally can't possibly impact the quality of the audit.
You bunch of fringe low brow Zero Hedge morons!--KPMG
Hey banzai, remember the guy who offered you 3 bitcoins for one of your prints and you never got around to me? Could have had a cool $630 dollars right now. Too bad man.
Sorry, I thought I responded to you earlier.
I'm not set up to do barter or Bitcoins at this point.
Glad you are doing well with your investment though. I like the idea that Bitcoins are shaking the statists. However, I do not look at the speculative froth as a positive development.
If you are still interested in the print, the price has not changed.
WB7
If nothing else all this corruption is going to be good for the job seekers on the sidelines as they purge the lower ranks during the damage control process.
Problem is in these cases usually the ones getting purged are the soldiers following orders not the real culprits directing them.
well this begs the question: was that KPMG partner buying or selling?? us honest traders want to know : )
It's so tempting to short all of these garbage companies. Especially with puts. You just can't time the fraud though, that's the hard thing.
Was he short or long? Nothing else matters.
You have to wonder. If they quit because someone they already fired was a bad apple and did insider trading, why not quit the business entirely, rather than just with HLF and Sketchers? After all, one can inside trade anything if you have the info...
Something smells fishy.
The fact KPMG is pushing to hire associate data analysts and not asking for 20 years of experience and a PHD on the direct job market in this environment probably is partially related to whatever is going on behind the scenes here. Internal purge of people and culture.