NEW YORK — Herbalife shares reopened for trading in the late morning after the company learned that a partner at its independent auditor may have been trading Herbalife shares illegally.
Herbalife's stock was down 21 cents at $38.18 Tuesday. The broader market was mixed.
Accounting firm KPMG told Herbalife that it had to resign as auditor because it learned that a KPMG partner may have used inside information to trade Herbalife stock.
Herbalife said KPMG's resignation was not related to Herbalife's financial statements or accounting practices.
The development comes at an awkward time for Herbalife. Hedge fund mogul Bill Ackman has publicly accused of it distorting its financial information. Herbalife has shot back, saying Ackman just wants to push the stock down for his own profit. Ackman has bet the stock would fall.