Herbalife shares are surging on the announcement that the SEC has charged former KPMG partner Scott London, who oversaw Herbalife audits, with insider trading.
According to CNBC’s Josh Lipton, London passed along tips about rumours that Herbalife could go private to investors, saying that was where they would really make money on the stock.
The stock initially jumped to an intraday high of $39.80 from levels around $37.50 prior to the announcement, but has since backed off a bit. Now, it’s up around 5 per cent on the day.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.