In a blow to the world's largest accounting firm, KPMG, the auditors resigned as the two U.S. companies an FBI investigation of insider trading allegations involving information disclosure, and former senior partner.
Calif. - nutrition group Herbalife Ltd. and footwear manufacturer Skechers USA Inc. - two companies said on Tuesday that its auditors, KPMG, have resigned from the leak.
Federal Bureau of Investigation (FBI) office in Los Angeles is investigating the matter, according to a source familiar with the situation.
Skechers Chief Financial Officer David Weinberg told Reuters reporters in an interview with reporters, London, Scott has been Skechers lead auditing division, has resigned after the leak. Weinberg said that London has admitted that internal information sharing.
KPMG spokesman confirmed that a partner in London has resigned from the company.
London did not immediately comment on the matter. 50-year-old California native KPMG for 29 years. Baseball lovers, London in 2011 to become President of the Los Angeles Sports Council. He is also listed as the Los Angeles Chamber of Commerce Board of Directors in 2012.
Herbalife shares closed down 3.8%, to $ 36.95, Skechers shares were up 1.9%, to moderately bullish trading day on the New York Stock Exchange (Tuesday) at $ 21.91.
Analysts cut Herbalife
Analyst Timothy Remy, investment services company, DA Davidson Herbalife said in a report, "This is the stock would be disruptive, but hopefully not the company.
Remy downgraded shares of Herbalife "neutral" from "buy."
Herbalife said in a statement, the KPMG resignation with the company's accounting practices its management or integrity - questioned in the company of high-risk hedge fund giant Bill Ackerman and Carl Icahn (Carl Icahn) between drama has nothing to do.
KPMG said in a statement Monday night, the two actions of senior partner, who is responsible for the audit practice in the business sector in Los Angeles, due to any of the customer's external auditors resigned.
Monday's announcement did not identify the partners or the companies involved. It said the unidentified partners to provide insider information about their clients who use this information, stock trading.
The partner immediately separated from the company, "KPMG said in a statement. "This man violated the company's strict policies and protection, betrayed the trust of customers, as well as colleagues, as KPMG's long-standing culture of professionalism and integrity willful blindness."
Calls for more transparency
When KPMG resigned the famous late Monday, the identity of the senior partner involved in the initial unknown. London's name did not appear until late Tuesday.
Public Company Accounting Oversight Board (PCAOB), policy auditing firm, in 2011, the company is required to disclose the name of the audit report individuals to participate in partner, because they have in some other countries.
This proposal has not been the rules of the United States. Some audits critics say, it should be more transparent audit, the audit firm to resist this idea for a variety of reasons.
The spokesman for ?PCAOB declined to comment.
KPMG is the smallest of the four largest accounting and auditing companies. It is reported that 2012 revenues of $ 2.3 billion, an increase of 1.4% over the previous year.
The three other companies, PricewaterhouseCoopers, Coopers & Lybrand, Deloitte and Ernst & Young. All headquartered in the network of branches in the United States and around the world.
Ackerman and Icahn did not immediately comment.
KPMG transactions of any dispute, which may damage the company's reputation. In 2005, KPMG, narrowly avoiding a criminal indictment, agreed to pay $ 456 million deferred prosecution solve with the U.S. authorities in their sales tax avoidance. Three years ago, smaller rival Arthur Andersen collapsed energy company Enron audit work
In addition, KPMG partner only, so far, with the global financial crisis has been sued by the U.S. Securities and Exchange Commission.
 



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