Accounting firm KPMG has resigned as the auditor for Herbalife (NYSE_HLF), a dietary supplements maker, and the shoe retailer Skechers (NYSE_SKX) after a rogue partner allegedly leaked information about the companies to someone who used it for insider trading.
KPMG said it has fired the partner and had no reason to believe there were any problems with the financial reports of the two companies. KPMG did withdraw its recent audit reports on both companies because it felt its independence had been compromised.
KPMG didn't reveal the partner's identity. It announced the dismissal in a statement late Monday in which it also said it was resigning as auditor for two companies that it didn't identify.
Herbalife and Skechers made their own announcements on Tuesday confirming that they were they companies involved. Skechers said KPMG told it that the ex-partner provided the inside information in exchange for money and is under federal investigation. Continue reading "KPMG resigns as auditor for Herbalife, Skechers"