Health and Healthcare
Herbalife Stock Halted Briefly as New Audit Firm Named
Published:
Last Updated:
That’s what happened: Herbalife announced that its new auditing firm would be PricewaterhouseCoopers and that the firm would begin immediately to re-audit the company’s consolidated financial statements for fiscal years 2010, 2011, 2012, and the first quarter of 2013.
Today’s announcement is a follow-up to an announcement on April 9th that Herbalife’s former auditing firm, KPMG, had fired a senior partner for divulging insider information that was used to trade stocks in West Coast-based companies, including Herbalife and Skechers USA Inc. (NYSE: SKX). KPMG resigned the two accounts.
Herbalife is the center of a controversial claim by hedge fund manager William Ackman that the company is a pyramid scheme. Ackman has taken a short position of about $1 billion in Herbalife, which has gathered support from activist investor Carl Icahn.
Trading in Herbalife’s shares resumed in less than 20 minutes and the stock is trading about 3% at $50.70 in a 52-week range of $24.24 to $56.39.
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.