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Herbalife Hires PWC As New Accountant; Will Reaudit 2010, 2011 And 2012

Submitted by Tyler Durden on 05/21/2013 12:13 -0400

Following the dismissal of KPMG over insider trading 'issues', Herbalife has just announced it will be hiring PricewaterhouseCoopers as their new auditor:

*HERBALIFE HIRES PRICEWATERHOUSECOOPERS :HLF US
*HERBALIFE SAYS PWC TO RE-AUDIT FY10, FY11, FY12 :HLF US

Indications point to a modest rise from the pre-halt close of $49.87.

Full Press Release below:

Herbalife Engages PricewaterhouseCoopers LLP As Auditors

May 21, 2013, LOS ANGELES—(BUSINESS WIRE)— Herbalife Ltd. (NYSE:HLF), today filed a Form 8-K indicating that the Audit Committee of its Board of Directors has engaged PricewaterhouseCoopers LLP (“PwC”) as the Company’s independent auditors. PwC will commence work immediately to re-audit the Company’s consolidated financial statements for the fiscal years ended December 31, 2010, 2011 and 2012. PwC will also review the Company’s condensed consolidated financial statements for the first quarter of 2013. The engagement of PwC was made after an extensive evaluation process by the Company’s Audit Committee.

As previously announced, the change in auditors was the result of KPMG LLP’s (“KPMG”) resignation as Herbalife’s independent auditors, due to the impairment of KPMG’s independence resulting from its now former partner’s alleged unlawful activities. As stated by KPMG, their resignation was not related to Herbalife’s financial statements, its accounting practices, the integrity of Herbalife’s management, or for any other reason.

“We are very pleased to have engaged PwC to serve as the Company’s independent auditor. They will begin work immediately to re-audit the Company’s December 31, 2010, 2011 and 2012 consolidated financial statements. Investors should rest assured that the Company will be working to assist PwC in any way necessary to facilitate their work,” said the chairman of Herbalife’s audit committee Leroy Barnes.

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Tue, 05/21/2013 - 12:17 | 3584359 slaughterer

Bend o'er Bill.

Tue, 05/21/2013 - 12:18 | 3584362 knukles

Do they mean re-audit or redact?

Tue, 05/21/2013 - 12:24 | 3584390 ZippyBananaPants

Harry Reid is a TOOL!

Tue, 05/21/2013 - 14:33 | 3584870 nugjuice

Two things I've learned from this HLF drama:

1) The best (and maybe only) actionable trading advice from this site is from short squeeze candidates, of which almost all of them have been big wins. ZH called this one after Ackman got in over his head. This would have been good for almost a double so far this year if you had the guts to hang on. From now on, I'm listening to Tyler when he's drumming up a short squeeze.

2) Never, ever, ever fuck with Carl Icahn. In fact, I'd prefer him not even knowing I exist. So far, it's working.

Tue, 05/21/2013 - 13:04 | 3584483 Jdog

PWC are Egyptians, they build pyramids! Ackman is cooked

Tue, 05/21/2013 - 12:18 | 3584361 Cognitive Dissonance

"As previously announced, the change in auditors was the result of KPMG LLP’s (“KPMG”) resignation as Herbalife’s independent auditors, due to the impairment of KPMG’s independence resulting from its now former partner’s alleged unlawful activities."

So..........will KPMG refund their last three years of audit fees? Yeah...I didn't think so.

Tue, 05/21/2013 - 12:24 | 3584391 firstdivision

...and what happens when PWC finds "discrepencies"?

Tue, 05/21/2013 - 13:58 | 3584699 NotApplicable

Why, blame it all on KPMG, of course.

Tue, 05/21/2013 - 12:36 | 3584416 NEOSERF

Audit firms are like rating agencies and boxes of chocolates...keep trying until you find one you like.

Tue, 05/21/2013 - 12:48 | 3584440 Overflow-admin

Auditing a firm that... pays you?

INDEPENDENT PEOPLE should audit the firm. Like say, Canadian Aquaculture Industry Alliance (CAIA) and affiliate firms should be audited in regard of "Salmon Confidential" findings by
* Canadian ministery of (laughs) agriculture?
* PEOPLE?

Same conclusions.

Tue, 05/21/2013 - 12:48 | 3584448 Common_Cents22