Herbalife (HLF -3.48%) has had a rough time of things so far this year, and things got even rougher when the multilevel marketer got sucked into an insider trading scandal at KPMG last week. When a KPMG partner was caught selling inside information on two clients he was auditing, Skechers (SKX -0.56%) and Herbalife, and subsequently "fired" both clients, Skechers shares skated away unscathed -- but Herbalife lost more than $100 million in market cap.

How should Herbalife respond to the situation KPMG has put it in? Click through to the following video, and Fool contributor Rich Smith will lay it out for you.