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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.
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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.
·United States
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PricewaterhouseCoopers (PwC) has filed a lawsuit in the Hong Kong High Court against China Evergrande Group, alleging financial fraud in its 2019 and 2020 fiscal years. The liquidators are seeking damages totaling RMB 57 billion. They also revealed that Evergrande's debt burden is heavier than initially estimated. The case, filed by the liquidators of China Evergrande against PwC regarding alleged financial fraud in its 2019 and 2020 fiscal yea…
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Total News Sources23
Leaning Left8Leaning Right2Center4Last UpdatedBias Distribution57% Left
Bias Distribution
- 57% of the sources lean Left
57% Left
L 57%
C 29%
14%
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