China Evergrande liquidators seek $8.4B from accounting firm PwC in Hong Kong lawsuit
The liquidators are pursuing claims over alleged audit failures after regulators fined PwC HK$300 million and imposed a six-month practice ban.
- On Monday, liquidators for China Evergrande presented a claim for 57 billion yuan against PwC International in the Hong Kong High Court, overseen by Deputy Judge Patrick Fung Pak-tung.
- China Evergrande collapsed in 2021 with more than $300 billion in liabilities, triggering a severe property sector crisis. Liquidators launched these proceedings alleging "negligence" in PwC's auditing work for the failed developer.
- Regulators previously penalized the auditor, with the Securities and Futures Commission reaching an agreement last month for PwC Hong Kong to pay $128 million. The Accounting and Financial Reporting Council separately fined the firm HK$300 million.
- Mainland Chinese authorities fined the auditor $62 million in September 2024, alleging Evergrande inflated revenues by roughly $80 billion in 2019 and 2020 financial results. PwC acknowledged its work fell "well below our high expectations."
- Evergrande founder Hui Ka Yan pleaded guilty in April to charges including fraud and bribery, marking the latest development in the company's collapse. A court decision on the liquidators' claims against the auditor has not yet been made.
28 Articles
28 Articles
Associated Press News
China Evergrande liquidators seek $8.4B from accounting firm PwC in Hong Kong lawsuit
Liquidators of China Evergrande are seeking $8.4 billion from accounting firm PwC. They alleged negligence in PwC's auditing of the failed Chinese developer.
Evergrande Liquidators Want to Take an Extra Grande Bite Out of PwC's Whole Pocket
It’s already cost PwC China as much as two-thirds of their revenue due to regulatory punishments and reputational fallout, and now the collapse of long-time audit client Evergrande in 2021 could take another $8.4 billion out of PwC’s pockets. Although it was PwC Zhong Tian that did the work, the liquidators are dragging PwC International into the claim as well in a fight that could extract billions from PwC coffers. Effectively, the liquidators …
Roundup: Evergrande Liquidators Seek $8.4B From PwC
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