Thank you for sharing!

Your article was successfully shared with the contacts you provided.
PONZI SCHEME CASE SETTLES PRE-ARGUMENT The California Supreme Court on Wednesday decided not to review a case in which accounting giant PricewaterhouseCoopers stood accused of aiding an illegal Ponzi scheme. The court’s unanimous decision was based on a request by both sides following a settlement at the trial court level. PricewaterhouseCoopers had been accused by Grafton Partners and Allied Capital Partners of breaching a contract in 2002 by not informing them that a fund in which all three had invested was involved in an illegal Ponzi scheme. A third company, Six Sigma, and a class of investors who held limited partnerships in Grafton and Allied, joined the suit later. An Alameda County Superior Court judge threw out the new parties in 2003. But San Francisco’s First District Court of Appeal reinstated them late last year, saying there was a triable issue of material fact. The high court granted review in March. According to Alameda County Superior Court records, PwC settled the case by agreeing to pay $39.5 million. Bartko, Zankel, Tarrant & Miller partner John Bartko, who represented the investors, said all parties “were pleased” with the outcome. He also said the settlement was final on Sept. 5.

Mike McKee

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.