China Evergrande’s liquidators have launched court proceedings against PwC, accusing the Big Four auditing firm of “negligence” and “misrepresentation” in its work for the collapsed property group.
Lawyers for the liquidators started the legal process against PwC Hong Kong and PwC Zhong Tian, the firm’s mainland China arm, in March, court documents obtained by the Financial Times on Tuesday showed. The documents — which do not say how much money the liquidators might sue for — had not previously been made public.
The March filing with Hong Kong’s High Court, known as a writ of summons, lays the ground for a legal case that would add to PwC’s woes just as it braces for penalties from Chinese authorities over its work for Evergrande. PwC, which resigned as the property group’s auditor last year, had given it a clean bill of health for more than a decade before it collapsed.