Herbalife Names Pricewaterhouse New Auditor

LOS ANGELES (AP) -- Herbalife (NYSE: HLF  ) says it has hired PricewaterhouseCoopers to be its new auditor.

The nutrition company's previous auditor KPMG resigned last month after insider trading allegations against a rogue executive of the accounting firm. The former KPMG partner, Scott London, has been charged with conspiracy to commit securities fraud.

KPMG's resignation came at a sensitive time for Herbalife, which is in the middle of a fight between activist investor Bill Ackman and his rival, Carl Icahn. Ackman has publicly attacked Herbalife, saying its business model amounts to a pyramid scheme.

PricewaterhouseCoopers will reaudit Herbalife's financial records for fiscal years 2010, 2011 and 2012 and review the company's results for the first quarter of 2013.

Shares of Herbalife are up nearly 4 percent to $51.10 in afternoon trading.


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