August 27, 2016
PwC has settled a lawsuit brought against it over one of the biggest bank collapses in US history, in a landmark case that shone a light on the responsibility of auditors to detect fraud.
The world’s biggest professional services firm by annual revenues had been accused of failing to catch a multibillion-dollar conspiracy between executives at Taylor, Bean & Whitaker, a defunct mortgage lender, and counterparts at Colonial Bank, an Alabama-based lender that supplied TBW with loans. The decision to settle – for a confidential sum – came four weeks into proceedings in a state court in Miami. “The case was settled to the mutual satisfaction of the parties,” said a PwC spokesperson.