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.