Evergrande liquidators seek US$8.4 billion from PwC entities in Hong Kong lawsuit
PwC International seeks removal from case as liquidators press claims against global arm as well as the Hong Kong and mainland China units
The liquidators of China Evergrande Group are seeking 57 billion yuan (US$8.4 billion) from three PricewaterhouseCoopers (PwC) entities in one of the largest corporate lawsuit claims in Hong Kong, arguing the firm’s global coordinating arm assumed responsibility for audits linked to the collapsed developer’s accounting scandal.
Evergrande’s liquidators, Tiffany Wong and Eddie Middleton of Alvarez & Marsal, were pursuing the claim against PwC International, PwC Hong Kong and PwC China jointly, the High Court heard on Monday.
The court also heard an application by PwC International to be removed from the lawsuit before the main trial begins.
Deputy Judge Patrick Fung Pak-tung took submissions from both sides and was expected to hand down judgment within three months.
PwC International said it merely coordinated PwC’s global network from London and did not itself provide audit or advisory services. Its lawyers, led by Richard Handyside, said only PwC Hong Kong and PwC China carried out Evergrande’s audits and signed unqualified opinions on the developer’s 2017 to 2020 financial statements.
Handyside told the court that the Hong Kong and mainland China firms operated as independent member firms rather than subsidiaries of PwC International.