January 13, 2022

Is PwC on the Ropes in the MF Global Trial?

pwc-mf-global-trial-motion-causation

How are you, PwC?

Week 2 in the trial between MF Global and PwC started off interestingly enough: PwC wants the judge to consider declaring a mistrial. The reason? The firm’s lawyers claim that the plaintiffs have “changed its theory of why the brokerage failed” calling it a “trial by ambush.”

MF Global’s attorneys see it differently, of course. Here’s what Dan Fetterman, the lead attorney for MF Global said:

“This motion is extremely untimely,” he said. “We are entitled to try causation as the evidence comes in. … This is way too late, highly prejudicial. It is gamesmanship.”

In a statement forwarded to Going Concern by a spokesman for the plaintiffs, Mr. Fetterman added, “This is a desperate motion you make when you are losing.” (You can read a copy of the motion at the link below.)

If you recall, PwC settled in its lawsuit with the bankruptcy trustee of Taylor, Bean & Whitaker last August in the middle of the trial. Can’t help but wonder if their lawyers find themselves on similar footing here and starting to pull out all the stops.

Reuters quotes Judge Victor Marrero as saying, “This is obviously a major issue, a complicated subject,” and that he gave the plaintiffs until tomorrow to respond. We’ll continue to watch this story.

[Reuters, Motion To Bar New Causation Theory]

Correction: An earlier version of this article erroneously stated that PwC settled a lawsuit with Colonial Bank.

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