Liquidators for Evergrande Group are seeking 57 billion yuan ($8.4 billion) in damages from PwC, accusing the auditor of negligence, a Hong Kong court heard on Monday. The claim targets PwC International, PwC HK, and PwC's China arm.
The potential damages come on top of hefty fines imposed by Chinese and Hong Kong regulators after Evergrande's collapse with over $300 billion in liabilities. The total claim against PwC International is capped at 38 billion yuan.
PwC International's lawyer, Richard Handyside, argued the firm should not be a party as it had no communications with Evergrande and no duty of care. However, the liquidators' lawyer, Adrian Beltrami, countered that PwC International oversees member firms' standards.
Evergrande defaulted in 2021 and was ordered to liquidate in 2024. PwC's China arm received a six-month suspension and a record 441 million yuan fine for audit failures, while PwC HK was fined HK$300 million and suspended for six months.
Creditors' claims total some $45 billion, with only $255 million in assets sold as of last August.
