PracticeAuditAIG shareholders seek damages from PwC

AIG shareholders seek damages from PwC

Auditor to be held liable for £1.6bn regulatory settlement by shareholders of AIG

Shareholders of the American International Group (AIG) have renewed claims
against PwC, the company’s auditor, holding it liable for a £1.64bn regulatory
settlement and a restatement.

Shareholders previously sued in 2004 and named ex-CIO chief executive Maurice
‘Hank’ Greenberg, former CFO Howard Smith, and PwC as defendants in the action.

But on Friday, they filed an amended complaint seeking damages from the
auditors as well as several others, including Marsh & McLennan Cos Inc, ACE
Ltd, and other current and former AIG directors,
Reuters.com
reported.

AIG, which ousted Greenberg and Smith, wrote off $3.92bn in profits between
2000 and 2004, and was forced to write down $2.26bn of shareholder equity.

In February 2006 the company agreed to pay $1.64bn in fines and restitution
as a result of regulatory probes by New York’s attorney general, the SEC and the
Justice Department.

Further reading:

Hank
Greenberg’s Tonya Harding Act Falls Flat

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