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Hong Kong court allows Evergrande liquidators to sue PwC global network
A Hong Kong court has ruled that liquidators for the collapsed Chinese property giant Evergrande can proceed with a multi-billion dollar lawsuit against the global network of PwC. The decision allows liquidators to pursue PwC International, alongside its Hong Kong and mainland Chinese affiliates, for alleged auditing failures.
Liquidators Eddie Middleton and Tiffany Wong of Alvarez & Marsal are seeking approximately $8.4 billion in damages. They allege negligence and misrepresentation regarding the auditing work performed for Evergrande. The legal action follows findings by regulators that PwC's local auditors failed to meet professional standards when approving the developer's financial statements.
PwC International has expressed disagreement with the ruling, stating that it acts as a coordinating entity and has never provided direct services to Evergrande. The court, led by Deputy High Court Judge Patrick Fung, determined that the evidence provided by PwC to exit the case was inadequate and that further disclosure of documents and questioning is necessary to clarify the matter.
Entities
Alvarez & Marsal · China Evergrande Group · Hong Kong · Patrick Fung · PwC International
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] A Hong Kong court ruled that Evergrande liquidators can proceed with a lawsuit against PwC International. www.correiodamanhacanada.com · www.insurancejournal.com · sapo.pt
- [● 2 SOURCES] Evergrande defaulted in 2021 with liabilities totaling approximately $300 billion. www.correiodamanhacanada.com · sapo.pt
- [○ 1 SOURCE] The liquidators allege negligence and misrepresentation in PwC's auditing work. www.insurancejournal.com
- [● 3 SOURCES] The lawsuit targets PwC International, its Hong Kong affiliates, and its mainland Chinese affiliates. www.correiodamanhacanada.com · www.insurancejournal.com · sapo.pt
- [○ 1 SOURCE] Eddie Middleton and Tiffany Wong of Alvarez & Marsal are serving as the appointed liquidators. www.correiodamanhacanada.com
- [● 2 SOURCES] Liquidators are seeking approximately $8.4 billion in damages. www.correiodamanhacanada.com · sapo.pt
- [○ 1 SOURCE] PwC International claims it provided no services to Evergrande and has no direct relationship with the company. www.insurancejournal.com
- [● 2 SOURCES] Chinese authorities concluded that Evergrande fraudulently inflated its revenues prior to its collapse. www.correiodamanhacanada.com · sapo.pt