High Court Rejects PwC International Bid to Exit Evergrande $57 Billion Lawsuit
Bastillepost · 2 SOURCESabout 1 hour ago2 MIN
Summary
Hong Kong's High Court on Wednesday rejected PwC International's application to be removed as a defendant in the 57 billion yuan lawsuit filed by China Evergrande's liquidators. Judge Fung Pak-tai ruled that the case involves complex questions about PwC International's governance role and oversight responsibilities that require full trial proceedings to resolve. The accounting firm must pay 3.34 million Hong Kong dollars in legal costs to the liquidators.
Key Points
- Evergrande was ordered into liquidation by the High Court in January 2024, with Alverez & Marsal's Wong Wing-sze and Edward Simon Middleton appointed as joint liquidators
- In 2024, the liquidators filed suit seeking 57 billion yuan from PwC Hong Kong, PwC China, and PwC International, with 38 billion yuan targeted at PwC International alone
- PwC International argued it merely coordinates the global network and is prohibited by its charter from conducting any accounting or auditing work
- The liquidators alleged PwC International has the power to appoint leadership for member firms and bears responsibility for ensuring consistent professional standards across the network
- Judge Fung ruled that dismissal applications are a severe remedy only granted when claims are entirely without merit, finding the liquidators' case has arguable points warranting full trial
Why It Matters
This ruling keeps PwC International in the lawsuit and preserves the liquidators' ability to pursue the massive 57 billion yuan claim against the global network's coordinating entity, which could set an important precedent for auditor accountability in cross-border cases .
The case will now proceed to full document disclosure and witness examination, allowing both sides to present evidence on PwC International's actual involvement in the controversial Evergrande audits that allegedly concealed massive losses .
This ruling keeps PwC International in the lawsuit and preserves the liquidators' ability to pursue the massive 57 billion yuan claim against the global network's coordinating entity, which could set an important precedent for auditor accountability in cross-border cases .
The case will now proceed to full document disclosure and witness examination, allowing both sides to present evidence on PwC International's actual involvement in the controversial Evergrande audits that allegedly concealed massive losses .