Auditing firm liable for allowing company to go deeper into insolvency

The following link is to a recent U.S. Court of Appeals, Third Circuit opinion upholding a verdict against PwC for an alleged negligent audit that allowed an insurance company that was being audited to go deeper into insolvency. This case could have important ramifications in the coming years in light of the current financial and economic downturn and the number of other businesses that are approaching insolvency. Paulette J. Thabault v. Doris June Chait; PriceWaterhouseCoopers, LLP (U.S. Court of Appeals, Third Circuit, No. 06-2209).

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