Herbalife “Members” Are Tired of Getting Bullied Over Their Herbalifestyle
Believers in the Herbalifestyle have sent out a press release demanding an end to the "lies and smears" that are getting in the way of their downline management and inventory unloading: Herbalife (NYSE:HLF), a leading global nutrition company, announced today that dozens of independent Herbalife members and independent business owners will hold a press conference […]
Herbalife Making Moves to Become Honey Badger of Investigations
Herbalife isn't having a great time but it's fine. No really, it's fine. First, they had to squash some rumors a few days ago with this press release: We have no knowledge of any ongoing investigation by the DOJ or the FBI, and we have not received any formal nor informal request for information from […]
Herbalife is Having the Worst Wednesday Right Now
Well no one saw that coming, eh? Herbalife (HLF) announced it received today a Civil Investigative Demand (CID) from the Federal Trade Commission (FTC). In response, Herbalife issued the following statement: Herbalife welcomes the inquiry given the tremendous amount of misinformation in the marketplace, and will cooperate fully with the FTC. We are confident that […]
Short Sellers, Moms, Son of God, all Credited with Encouraging PwC’s Vigorous Audit of Herbalife
For an analyst, it doesn't seem this guy understands how audits work: In the wake of Herbalife's clean bill of health from its new auditors, one of the company’s most bullish analysts is taking a victory lap. “We’d like to thank Mom, Jesus, and the short sellers,” D.A. Davidson analyst Tim Ramey wrote to clients […]
Herbalife Director Confident in PwC’s Audit; Others, Not So Much
This is fun. Here's what Herbalife Director Jeff Dunn, who's not a member of the company's audit committee, told Bloomberg about the current state of the re-audits: “I have nothing that suggests anything’s going to come out of the audit,” Dunn said yesterday in a telephone interview. “We view it as an opportunity because now […]
The SEC Manages to Get Softer on Big 4 Audit Firms
Incredibly, the SEC has done something I didn't think was possible. It has, in its implicit blessing of Herbalife's selection of PwC as auditor, given the Big 4 and other audit firms more leverage in future debates over independence with regard to past non-audit services. And the last thing the Big 4 needs is more […]
(UPDATE) In Becoming Herbalife’s Auditor, PwC Does a Dicey Independence Dance
~ See update below It seems fitting that PwC would replace KPMG as Herbalife's auditor, doesn't it? On May 21, 2013, the Audit Committee of the Company’s Board of Directors engaged PricewaterhouseCoopers LLP (“PwC”) to serve as its new independent registered public accounting firm to audit the Company’s financial statements for its fiscal year ending […]
Herbalife’s Surprise Be-Our-New-Audit-Firm Sweepstakes Will Have a Winner Soon
Herbalife Ltd. is making progress in its search for a new accounting firm, executives said during a conference call with analysts Tuesday. The Los Angeles nutritional products company was forced to hire a new accounting firm after KPMG resigned earlier this month because one of its senior partners was accused of insider trading in Herbalife stock. The […]
(UPDATE) Complaint Says Scott London Admitted to Tipping Bryan Shaw About Five KPMG Clients
~ Update below includes details from the criminal complaint, including Springsteen tickets!
From the Journal:
KPMG’s Official Statement Meets Mystery (Bachelor of) Science (in Accounting) Theater
When a giant insider trading turd hits the fan of independence, KPMG spokesman Timothy Connolly is there with a Clorox wipe to sanitize the minds of the American public. Here's what he said. Be careful, it'll probably sting your amygdala. Late last week, we were informed that the partner in charge of KPMG’s audit practice in […]
Despite Entering a ‘War Zone’, the Next Auditor of Herbalife Should Find Solace in All the Fees They’ll Earn
Part of the reason this KPMG resignation is such a conundrum for both Herbalife and Skechers is that the firm withdrew its audits back to 2010. The clean-up crew for each company will have its work cut out, and according to Georgetown professor James Angel, Herbalife's new auditor, especially, will "be walking into a war […]
(UPDATE) KPMG to Resign as Herbalife’s Auditor; Who’s Next? A: Skechers
~ Several updates below including the name of the partner fired by KPMG and statements from Herbalife and Skechers. That was fast. The New York Times reports that the KPMG will be resigning as the auditor of Herbalife: Herbalife is poised to disclose on Tuesday that KPMG will have to resign as the company’s […]