PwC to face trial relating to Evergrande collapse

The liquidators of collapsed developer China Evergrande Group have won a legal victory against PricewaterhouseCoopers (PwC) International, indicating that the firm and two other units of the accounting giant would need to jointly face the largest corporate lawsuit claims in Hong Kong, reports the South China Morning Post.

Deputy High Court Judge Patrick Fung Pak-tung rejected the application by PwC International to be dismissed from the lawsuits involving claims by the liquidators of China Evergrande Group. In his ruling, the judge said PwC International “did owe a duty of care” to China Evergrande Group, as the liquidators’ lawyers had pointed out that PwC International had the power to control and govern its member firms. 

The liquidators are seeking approximately RMB 57.9 billion ($8.6 billion) in total from PwC Hong Kong and PwC Zhong Tian, of which approximately RMB 38.1 billion is also claimed against PwC International, the judgment paper said.