Evergrande’s liquidators are preparing for a potential lawsuit against PwC, which audited the now-collapsed Chinese property group for over a decade, in a move that could lead to the Big Four accounting firm facing a high-profile negligence claim.
Eddie Middleton and Tiffany Wong, the Alvarez & Marsal restructuring specialists appointed as liquidators of Evergrande’s Hong Kong-listed holding company last month, have spoken to at least two law firms about the prospect of bringing a claim against the audit firm, according to three people with knowledge of the conversations.
Bringing a claim would require the liquidators to build a case that PwC made mis-steps that have harmed creditors, the people said.