Anyone Concerned That PwC’s Legal Troubles Lacked International Flair Can Rest Easy

Scandal-hit subprime lender Cattles is suing PwC, alleging negligence over its audit of two years of financial statements. PwC intends to contest what it called the “inflated and misguided claim” in the High Court in London. […] A supervisor representing Cattles’ creditors asserted that PwC should not have signed off the 2006 and 2007 financial statements of the group, which once had a £1bn market capitalisation. “As a consequence, the financial statements fundamentally mis-stated the financial position of the group. In particular, if the impairment provisions had been properly audited, it would have revealed that the group’s business, over 90 per cent of which comprised a loan book, was not financially viable,” it added. [FT, Earlier, Elsewhere]