Lawsuit targets PwC’s global and regional arms, alleging audit failures contributed to China Evergrande’s $300bn collapse.
Liquidators for China Evergrande Group have filed a $8.4bn negligence claim against PwC in Hong Kong, alleging audit failures led to the developer’s collapse. The lawsuit names PwC International, PwC Hong Kong, and PwC China, with potential liability capped at 38bn yuan for the global entity.
Evergrande defaulted in 2021 and was ordered into liquidation in 2024, leaving $300bn in liabilities. PwC’s Chinese arm previously faced a six-month suspension and fines over the audit. The court is examining PwC International’s role in overseeing network standards.
A ruling on PwC International’s liability is expected within three months. The case follows arguments that the global entity had no direct dealings with Evergrande but controlled audit standards across member firms.