Herbalife Ltd. has chosen PricewaterhouseCoopers as its independent auditor, ending a nearly two-month effort to replace KPMG, which resigned after a senior partner was accused of insider trading.
The Los Angeles nutritional products company said PricewaterhouseCoopers would “immediately” begin re-auditing financial statements for 2010, 2011 and 2012, which KPMG withdrew after it learned of the insider-trading allegations.
Herbalife shares jumped more than 4% after the company announced its decision.
Scott London, a longtime KPMG employee in Los Angeles, was fired in April after he was accused of passing stock tips on several KPMG clients to a friend who used the information to make more than $1 million in profitable stock trades.
Last month, London acknowledged to The Times that he passed inside information to his friend, Bryan Shaw, who pleaded guilty Monday to federal insider-trading charges. London also intends to plead guilty, his attorney said.