Herbalife is poised to disclose on Tuesday that KPMG will have to resign as the company’s auditor, after the accounting firm fired a senior partner, according to a person briefed on the matter.
Herbalife shares were halted for trading because of news pending on Tuesday morning.
KPMG disclosed late on Monday that it had fired the partner, who was based in Los Angeles, for providing inside information to an unidentified individual who then traded in shares of several West Coast companies. The firm did not name the fired partner, but described the person as having led accounts for some clients in the region.
The accounting firm did not name the companies whose confidential information was disclosed as part of the scheme.
A call to a spokesman for Herbalife was not immediately returned.
