WordPress database error: [Disk full (/tmp/#sql_305e_0.MAI); waiting for someone to free some space... (errno: 28 "No space left on device")]
SELECT t.*, tt.* FROM vw_terms AS t INNER JOIN vw_term_taxonomy AS tt ON t.term_id = tt.term_id INNER JOIN vw_term_relationships AS tr ON tr.term_taxonomy_id = tt.term_taxonomy_id WHERE tt.taxonomy IN ('category') AND tr.object_id IN (144476) ORDER BY t.name ASC
Herbalife Ltd. (NYSE:HLF) is in the news once again (surprise). Shares of Herbalife Ltd. (NYSE:HLF) have been halted for nearly an hour. We earlier reported that the temporary suspension of trading was related to the auditor of the MLM company KPMG, resigning. Herbalife has sent us the following press release related to the news. It is still unclear why shares are halted even from the statement below.
Herbalife confirms that KPMG has resigned because of insider trading by a partner who audited Herbalife. The MLM company states KPMG must withdraw its audit reports on Herbalife’s financial statements for the years ended December 31st, 2010, 2011 and 2012. However, Herbalife believes from their internal Committee believes that they can be relied upon.
This is likely good news for Bill Ackman who is having a rough morning with JCP.
The full press release can be found below:
April 9, 2013
LOS ANGELES–(BUSINESS WIRE)–
Herbalife (HLF) today announced that KPMG LLP notified Herbalife on April 8, 2013 that KPMG was resigning, effective immediately, as Herbalife’s independent accountant. KPMG stated it had concluded it was not independent because of alleged insider trading in Herbalife’s securities by one of KPMG’s former partners who, until April 5, 2013, was the KPMG engagement partner on Herbalife’s audit. KPMG advised the Company it resigned as Herbalife’s independent accountant solely due to the impairment of KPMG’s independence resulting from its now former partner’s alleged unlawful activities and not for any reason related to Herbalife’s financial statements, its accounting practices, the integrity of Herbalife’s management or for any other reason.
None of KPMG’s audit reports on Herbalife’s financial statements for the fiscal years ended December 31, 2010, 2011 and 2012 or KPMG’s audit reports on the effectiveness of internal control over financial reporting as of December 31, 2010, 2011 and 2012 contained an adverse opinion or a disclaimer of opinion, nor was any such report qualified or modified as to uncertainty, audit scope or accounting principles. In addition, at no point during the three fiscal years ended December 31, 2012 and the subsequent interim period through April 8, 2013 were there any (1) disagreements with KPMG on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which disagreement(s), if not resolved to the satisfaction of KPMG, would have caused it to make reference to the subject matter of the disagreement(s) in connection with its reports, or (2) “reportable events” as such term is defined in Item 304(a)(1)(v) of Regulation S-K.
As a result of the alleged insider trading activity by its now former partner and KPMG’s resulting resignation on April 8, 2013, KPMG notified Herbalife that KPMG’s independence had been impaired and it had no option but to withdraw its audit reports on Herbalife’s financial statements for the fiscal years ended December 31, 2010, 2011 and 2012 and the effectiveness of internal control over financial reporting as of December 31, 2010, 2011 and 2012 and that such reports should no longer be relied upon as a result of KPMG’s lack of independence created by the circumstances described above. Herbalife’s Audit Committee and management continue to believe that the Company’s financial statements covering the referenced periods fairly present, in all material respects, the financial condition and results of operations of the Company as of the end of and for the referenced periods and may continue to be relied upon and that the Company’s internal control over financial reporting was effective during these periods.
As a result of the matters described above, Herbalife will be withdrawing the proposal to ratify the appointment of KPMG as Herbalife’s independent registered public accountants for fiscal 2013 originally planned to be submitted to Herbalife’s shareholders at Herbalife’s Annual General Meeting of Shareholders to be held on April 25, 2013.
About Herbalife Ltd.
Herbalife Ltd. (HLF) is a global nutrition company that sells weight-management, nutrition and personal care products intended to support a healthy lifestyle. Herbalife products are sold in more than 80 countries to and through a network of independent distributors. The company supports the Herbalife Family Foundation and its Casa Herbalife program to help bring good nutrition to children. Herbalife’s website contains information about Herbalife, including financial and other information for investors at http://ir.Herbalife.com. The company encourages investors to visit its website from time to time, as information is updated and new information is posted.