US health care group Herbalife has appointed PwC as its auditor following the resignation of former auditor, KPMG, due to breach of independence at the firm.
PwC is also to re-audit Herbalife’s financial statements for 2010, 2011 and 2012, which were withdrawn as part of KPMG’s resignation.
In April KPMG had to resign as auditor of Herbalife and shoe manufacturer Skechers after the head audit partner at the firm’s Los Angeles practice Scott London was accused of insider trading of non-public information.
London was immediately dismissed from KPMG and shortly after the US Securities and Exchange Commission charged him with tipping a friend, Bryan Shaw, with confidential details about five KPMG audit clients, which enabled Shaw to make more than $1.2m in illicit profits trading ahead of earnings or merger announcements.
At the end of April Skechers opted for a non-Big Four firm to replace KPMG and appointed BDO US as its auditor.
SEC charges KPMG partner with insider trading