PwC stopped from washing its hands off Evergrande
A Hong Kong court has dismissed PricewaterhouseCoopers International Ltd's effort to be excluded from a massive lawsuit brought by the liquidators of China Evergrande. Deputy High Court Judge Patrick Fung stated that PwC's submitted materials were insufficient and did not meet the necessary standard. This ruling may have significant consequences for global accounting firms, particularly those whose local affiliates are involved in allegations of corporate misconduct.
The dispute centers around PwC's auditing of Evergrande, which once dominated China's property development sector but now faces severe financial difficulties. The company defaulted on its debt in 2021 and was subsequently placed into bankruptcy in January 2024. Evergrande's liquidators filed legal proceedings against PwC entities in March 2024, accusing them of audit shortcomings and misrepresentation.
The liquidators are seeking a combined 57 billion yuan in damages, with about 38 billion yuan attributed to PwC International and its mainland Chinese and Hong Kong subsidiaries.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
