Los Angeles Business Journal

Herbalife Hires New Auditor

By Deborah Crowe Tuesday, May 21, 2013

Herbalife Ltd. on Tuesday said it hired PricewaterhouseCoopers LP as its new auditor, more than a month after KPMG LLP resigned when an L.A. partner was charged with insider trading.

The downtown Los Angeles multilevel marketing nutrition company said PricewaterhouseCoopers will audit its financial statements for the current fiscal year and re- audit statements for 2010 through 2012. The accounting giant’s current and past clients include other companies with multilevel and direct-marketing distribution business models, such as Nu Skin, Tupperware and Avon Products.

“(Herbalife) investors should rest assured that the company will be working to assist PwC in any way necessary to facilitate their work,” Leroy Barnes, chairman of Herbalife’s audit committee, said in a statement.

Bryan Shaw, who owns a jewelry story in Encino, on Monday pleaded guilty to a conspiracy charge and agreed to turn over $1.27 million in profits he made by trading on tips about Herbalife and other companies that were provided by auditor Scott London. KPMG fired London in early April.

Herbalife shares on Tuesday closed up $1.35, or 3 percent, to $50.56 on the New York Stock Exchange.