Herbalife Ltd. (HLF) News Trends: KPMG’s Exit, William Stiritz, Prof. William Keep & More

Editor’s Note: Herbalife Ltd. (NYSE:HLF), Post Holdings Inc (NYSE:POST)

KPMG resigns as Herbalife auditor after insider trading (Financial Post)
KPMG resigned as the auditor of Herbalife Ltd after one of its senior partners engaged in insider trading in Herbalife stock, the nutritional products company said on Tuesday. Herbalife said in a statement that KPMG’s resignation had nothing to do with its accounting practices or the integrity of its management — issues called into question by the high-stakes drama between hedge fund titans Bill Ackman and Carl Icahn over the company. KPMG said late on Monday it had resigned as the outside auditor of two of its clients because of the actions of a senior partner, who was in charge of the audit practice in its Los Angeles business unit.

Herbalife Triangle, Icahn, Soros, Ackman

Herbalife Gets New Ally as Stiritz Takes Stake Opposite Ackman (Businessweek)
William Stiritz, chief executive officer of the company that makes Raisin Bran, has taken a 5.2 percent stake in Herbalife Ltd. (NYSE:HLF), giving the nutrition maker another ally as it fights accusations it’s a pyramid scheme. Stiritz, chairman and CEO of Post Holdings Inc (NYSE:POST), became the fourth largest Herbalife shareholder after the stock purchase, which he disclosed today in a regulatory filing. He joins hedge fund manager Carl Icahn, who earlier this year took up the fight against investor Bill Ackman, who has sold Herbalife shares short and said the company is an illegal pyramid scheme that should be shut down. The company has repeatedly denied the allegations.

Herbalife lower after WSJ article (Seeking Alpha)
Shares of Herbalife Ltd. (NYSE:HLF) are under a bit of pressure today, falling as much as 6% before recovering. Possibly behind the move is a WSJ article published late Friday online and in the Saturday print edition. The piece profiles Professor William Keep, the dean of the College of New Jersey’s business school and the author (with FTC Senior Economist Peter Vander Nat) of the article “Marketing Fraud: An Approach for Differentiating Multilevel Marketing from Pyramid Schemes”, a quote from which appears on Bill Ackman’s factsaboutherbalife website. Keep has been consulted by two dozen investment firms in the past several months including Pershing Square, WSJ says.

Amid Herbalife Debate, Prof. Keep Gets Some Hedge-Fund Pupils (Wall Street Journal)
After years of lecturing in the classroom on the dangers of pyramid schemes, Prof. William Keep has a whole new set of pupils. Mr. Keep, a marketing professor and dean of the College of New Jersey’s business school, has been consulted with in recent months by roughly two dozen investment firms, including Bill Ackman’s Pershing Square Capital Management LP and George Soros’s Soros Fund Management LLC. The funds, which together control tens of billions of dollars of investment cash, have sought to tap into his expertise in the arcane field of multilevel marketing, an understanding of which is crucial to parsing the debate over Herbalife Ltd. (NYSE:HLF)’s business model.

Direct selling gig should be taken on with caution (Regina Leader-Post)
Multi-level marketing is a humming multi-billion-dollar engine of the Canadian economy that’s often overlooked, as business takes place in everyday conversations with friends and family, behind closed doors. But in recent months, an epic verbal battle between billionaire hedge-fund manager Bill Ackman and fellow corporate titan Carl Icahn over direct-selling company Herbalife Ltd. (NYSE:HLF), which sells health and nutrition products and supplements, has cast a spotlight on the global industry. Mr. Ackman has publicly, and repeatedly, called Herbalife a “fraud” and likened it to a Ponzi scheme, accusing the company of inflating prices and misleading consumers, and he has taken a massive $1-billion short position on the company to back it up.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!