PwC Sued for $1 Billion Over MFGlobal; Accused of ‘Erroneous’ Advice

Well it's a good thing we didn't check out early and head to the bar tonight, the ish just hit the proverbial fan for PwC:

The administrator of MF Global Holdings Ltd's bankruptcy plan on Friday sued the auditor PricewaterhouseCoopers for at least $1 billion over its advice on a $6.3 billion European sovereign debt investment that helped fuel the brokerage's rapid demise.

According to a complaint filed in U.S. District Court in Manhattan, PwC committed professional malpractice by offering "flatly erroneous" advice concerning, and approval of, the off-balance-sheet accounting treatment for the debt by MF Global and its then-chief executive, Jon Corzine.

SHOTS FIRED!!

The complaint does not mince words, saying PwC definitely let MF Global down by not pointing out MF Global was already in bad shape to begin with and shouldn't have monkeyed around with off sheet debt.

"PwC's professional malpractice and negligence were a direct and proximate cause of massive damages the company suffered," the complaint said.

 

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