Legal PricewaterhouseCoopers (PwC) has submitted the largest in the history of the claim, Financial Times writes.
The amount of claims against PwC is $5.5 billion suit was filed by the Trustee of the now bankrupt Taylor, Bean & Whitaker (TBW), engaged in mortgage lending. PwC blamed the fact that she didn’t notice the multi-billion dollar conspiracy of the founder of Taylor, Bean & Whitaker Lee Farkas with the leaders of the Colonial Bank. PwC, according to the lawsuit, from 2002 to 2008 carried out an audit of the Bank’s parent company — Colonial BancGroup — and found no violations, and in 2009, Colonial BancGroup has failed. Trustee Taylor, Bean & Whitaker stated that PwC confirmed the existence of the assets of Colonial Bank more than $1 billion, although in reality they did not exist.
In turn, lawyers for PwC last week said that their company has never had any relationship with Taylor, Bean & Whitaker and did not conduct her audit. They also noted that Deloitte & Touche, which carried out an audit of TBW for seven years prior to its bankruptcy, did not find any violations. Audit may not detect fraud, especially in cases when there are the conspiracy and the fabrication of documents, said the publication of one of PwC’s lawyers and expressed the hope that the jury will take “an appropriate decision”.
The process began on 9 August. It is expected to last about six weeks.