Evergrande Liquidators Sue PwC for Negligence

China Evergrande's liquidators have initiated legal proceedings against PricewaterhouseCoopers (PwC) for alleged 'negligence' and 'misrepresentation' in their auditing work during the firm's tenure as Evergrande’s auditor. The lawsuit, filed in Hong Kong, targets both PwC Hong Kong and its mainland division, PwC Zhong Tian, and is part of a broader effort to recover approximately $6 billion from various executives, including founder Hui Ka Yan. This legal action follows revelations that Evergrande overstated its revenue by 564 billion yuan between 2019 and 2020, leading to significant financial repercussions. PwC had provided clean audit reports for over a decade before resigning amid disputes in January 2023. The situation raises concerns about the integrity of auditing practices in China, with potential global implications for investor confidence. The liquidators are also pursuing claims against other firms involved in Evergrande's valuation.