PwC facing lawsuit over Cadbury audit
Nigerian shareholders suing PwC for alleged breach of duty
PricewaterhouseCoopers
and Cadbury Schweppes, are facing
a lawsuit from hundreds of shareholders in
Cadbury Schweppes’s
Nigerian subsidiary over an alleged breach of duty.
PwC and the board of Cadbury Nigeria are being sued by more than 300
shareholders, who are also demanding access to a financial review carried out by
PwC,
The
Times reported
Shareholders claim they ‘suffered a huge loss’ as a result of the
overstatement of Cadbury Nigeria’s financial position and that the defendants
failed to act in their interest.
In December last year, Cadbury said it had discovered ‘a significant and
deliberate overstatement of Cadbury Nigeria results, which had existed over a
number of years’ after increasing its stake in the business from 46.4% to 50.02%
last February.
Neither Cadbury Schweppes nor PwC would comment.
Further reading:
Cadbury resolves Nigerian debacle
Cadbury sweats over Nigerian meltdown