Court upholds $US183m award against PwC
A US federal appeals court has upheld a $US183m malpractice award against PwC stemming from 1981-82
A US federal appeals court has upheld a $US183m malpractice award against PwC stemming from 1981-82
PricewaterhouseCoopers (PwC) is reviewing a US federal appeals court ruling
which has upheld a $US183m (£104m) malpractice award against its predecessor
Coopers & Lybrand, stemming from audits in 1981 and 1982 of the collapsed
insurance company Ambassador Insurance Co. About 22,000 creditors are entitled
to share in the award, plaintiffs’ lawyer Richard Whitney said.
Vermont’s insurance department, which seized the company in 1983 after
deeming it insolvent, claimed Ambassador’s financial statements concealed the
company’s weakness from regulators, The Evening Sun reports in the US.
After years of litigation, culminating in a 2005 federal trial in New Jersey,
a jury awarded damages of about $US120m to the creditors, which grew to $US183m
with pretrial interest.
The jury assigned 40% of the liability to PwC and 60% to the insurer’s
founder and president, the late Arnold Chait. But courts said the defendants had
joint liability, leaving the firm responsible for the entire award.
External links
Further reading:
The numbers you crunch tell a story. Your expertis...
16yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThree years after accountancy group DJH Mitten Clarke launched, they have announced that they have rebranded to DJH. The DJH Mitten Clarke name reflec...
View articleStatic budgets outdated. Embrace agile budgeting for a smooth year-end close and adapt to changing markets. Read More...
View articleSaffery Champness's strategic rebrand to "Saffery" reflects a bold step towards aligning its historic values with a modern, innovative ethos, fosterin...
View articleSumer’s CEO Warren Mead believes accountants have a responsibility to champion smaller and medium-sized businesses and that successful entrepreneurs a...
View articleMid-market firms experience largest percentage increase in fee income in 2023, as consultancy services start to become leading income streams for the ...
View articleBaker Tilly International has today announced record global revenues of US$5.2bn for the financial year ended 31 December 2023, up 11% on the previous...
View articleWhilst Small and Medium Enterprises (SMEs) account for around half of the turnover in the UK private sector[1], our own AAT research shows that over a...
View articleGrant Thornton UK as confirmed the appointment of Malcolm Gomersall as its new Chief Executive Officer. Gomersall, who has been with the firm for over...
View article