Herbalife (NYSE:HLF) 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 (NYSE:SKX) 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.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Skechers and has long January 2014 $50 calls on Herbalife. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.