Foreign Media: Evergrande's Liquidator Sues PwC for $8.4 Billion Over Alleged Audit Negligence
On the 18th, Evergrande Group’s liquidators Edward Middleton and Tiffany Huang (from A&M Consulting) filed a lawsuit in Hong Kong court seeking compensation of 57 billion RMB (approximately $8.4 billion) from PwC, accusing the firm of serious lapses in its audit work on Evergrande. The claim targets three entities: PwC International, PwC Hong Kong, and PwC China, with PwC International facing a maximum liability of up to 38 billion RMB.
The hearing focused on the extent of responsibility PwC International should bear. PwC International’s legal team argued that there was no direct communication between the entity and Evergrande, that it did not owe a "duty of care" regarding Evergrande’s financial audits, and that the Hong Kong and Chinese branches of PwC are not subsidiaries of PwC International. In response, the liquidators’ lawyers contended that PwC International, as the top-tier entity within the global network, has a duty to uphold professional standards across its member firms. Judge Andrew is expected to deliver a ruling within the next three months.
Currently, the total claims by Evergrande’s creditors amount to approximately $45 billion, yet as of last August, only about $255 million in assets had been realized—highlighting a significant shortfall.
Original article: toutiao.com/article/1865540689624074/
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