Herbalife Auditor KPMG Resigns

    A worker cleans the logo on the Herbalife sign as finishing touches are put on the company's new building in Torrance, Calif., Friday, Sept. 8, 2006. Herbalife nutritional products are sold in 62 countries worldwide. (AP Photo/Herbalife, Susan Goldman) ** NO SALES **


    Accounting firm KPMG resigned from its assignment as auditor for the troubled nutritional-supplement company Herbalife Tuesday, prompting The New York Stock Exchange to immediately halt trading in the company's shares. No stranger to bad news, Herbalife has been the subject of an epic clash between hedge fund titans Bill Ackman, Daniel Loeb, and Carl Icahn for several months—a fight the media has nicknamed “the battle of the billionaires.” Ackman called Herbalife a sophisticated “pyramid scheme,” before shorting the company's stock and placing a $1 billion bet against it. Meanwhile, Loeb and Icahn staunchly defend the company, pushing back against Ackman and continuing to buy its shares.

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