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Evergrande's Liquidators Prepare to Sue PwC

Evergrande's Liquidators Prepare to Sue PwC

by Starling Insights

Starling Insights Editorial Board

Feb 28, 2024

Observations

The liquidators of now-collapsed Chinese property group Evergrande are preparing to sue PwC for alleged negligence in its audit work for the firm, as reported by the Australian Financial Review.

PwC served as Evergrande's auditor from the firm's listing in 2009 until 2023. In that time, it signed off on Evergrande's books even as the developer became heavily leveraged to fuel its growth. According to people with knowledge of the situation, liquidator Alvarez & Marsal is "taking steps to protect [their ability to bring] legal claims against auditors." 

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