Re-audit finds no need for changes to Herbalife's financial statements; shares soar

Herbalife says a re-audit of more than three years of its financial results found no material changes to its prior financial statements.

It’s good news for the company, which has faced intense criticism over the past year for its business structure and leadership.

The nutritional supplement company’s shares were temporarily halted pending the announcement Monday, but jumped as much as 13 per cent after trading resumed.

Herbalife’s prior auditor, KPMG, resigned in May following insider trading allegations against an executive of the accounting firm.

Herbalife’s new auditor, PricewaterhouseCoopers, re-audited Herbalife’s financial records for fiscal years 2010, 2011 and 2012 as well as part of 2013.

Shares of Herbalife Ltd. increased $6.34, or 9.1 per cent, to $74.72 in late afternoon trading after rising as high as $77.28 earlier.