The 3rd Circuit has upheld a judgment of more than $182 million against PricewaterhouseCoopers in an auditing malpractice suit brought by the receiver for bankrupt Ambassador Insurance. The suit accused PwC of negligence in its accounting procedures that caused the insurer's debts to continue to swell long after it should have been declared insolvent. Significantly, the panel rejected PwC's argument that the New Jersey courts wouldn't recognize a cause of action for "deepening insolvency."
$182 Million Judgment Upheld Against PricewaterhouseCoopers
The Legal Intelligencer
September 11, 2008