PwC International must face trial of Evergrande scandals claims: Hong Kong High Court
The liquidators of collapsed developer China Evergrande Group have won a legal victory against PricewaterhouseCoopers (PwC) International, indicating that the firm and two other units of the accounting giant would need to jointly face the largest corporate lawsuit claims in Hong Kong, according to a court judgment on Wednesday. Deputy High Court Judge Patrick Fung Pak-tung rejected the…
Hong Kong's High Court has ruled that accounting giant PwC International, along with two other units of the firm, must face a massive corporate lawsuit involving China Evergrande Group's liquidators. Deputy High Court Judge Patrick Fung Pak-tung dismissed PwC International's attempt to be removed from the lawsuits, stating that the company owes a duty of care to the liquidators and should not be excluded without a trial.
The liquidators, Tiffany Wong and Eddie Middleton of Alvarez & Marsal, are seeking approximately 57.9 billion yuan (US$8.6 billion) in total from PwC International, alongside PwC Hong Kong and PwC China. The liquidators claim that PwC International failed to oversee its member firms' audits of Evergrande's finances, but the firm argues it only coordinated the network from its London office.
The court's decision means that the lawsuits against PwC International, PwC Hong Kong, and PwC China will proceed to trial, with both sides set to contest the claims through cross-examination.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
