PwC agrees $55m Microstrategy payout
PricewaterhouseCoopers has agreed to pay investors in Microstrategy $55m (£38.7m) after becoming embroiled in a class action lawsuit involving the software-maker.
The settlement was confirmed by a spokesperson in the firm’s New York office, who told AccountancyAge.com: ‘Our decision to settle this case was a business one, taken with the aim of avoiding further costs and avoiding protracted litigation.’
‘We believe our defence in this case was strong and compelling,’ he added.
The suit alledged the company’s auditors had defrauded investors by approving financial reports – a charge denied by the firm.
When Microstrategy retracted two years of audited financial results for 1998 and 1999, its share price collapsed by 62% in one day, with investors losing billions in stock value.
The company then admitted it had been making a loss since 1997, contrary to financial records, which said it was making profits.
In December last year MicroStrategy agreed to settle with investors for $80.5m and also agreed to pay $11m to settle accounting fraud charges filed by the US Securities and Exchange Commission.
Links
Microstrategy agrees $11m payout