PwC Fails to Throw Out MF Global Malpractice Suit

[kreslik.news]

A federal judge on Friday paved the way for the MF Global Holdings Ltd.’s bankruptcy administrator after rejected PricewaterhouseCoopers’ bid to dismiss a $1 billion lawsuit. The suit accuses PwC of dispensing bad accounting advice on how MF Global should handle foreign investments made on highly leveraged European instruments that generated short-term income but saddled it with significant future liabilities.

The lawsuit, which seeks to hold PwC liable for its malpractice on advice surrounding MF Global’s business in the sovereign debt, is one of the last remaining pieces of litigation relating to the bankrupt financial services firm, following earlier settlements benefiting ... (read more)