FDIC v. PwC LLP et al.
The Focal Point’s Role
This case sought to hold auditors PricewaterhouseCoopers responsible for their failure to detect a $2.3 billion fraud that the Judge described as “one of the largest and longest-lasting bank frauds in American banking history” and which resulted in one of the largest US banking failures. Drawing upon The Focal Point’s significant auditor malpractice experience, TFP worked closely with the trial team over an extended period of time developing demonstratives for jury research testing, playing an active role in a three-day workshop to develop trial themes and visuals for opening statement, working closely on the preparation of materials for accounting experts, and supporting the litigation team throughout trial in the war room.
The Focal Point’s Client
Stephen Sorensen of Thomas Alexander Forrester & Sorensen LLP
Lawrence H. Heftman of Schiff Hardin LLP.
Court
U.S. District Court for the Middle District of Alabama
U.S. District Judge Barbara Jacobs Rothstein
Result
In a victory for the banking regulator, U.S. District Judge Barbara Jacobs Rothstein found PwC liable for negligent audits, and ordered the auditor to pay $625 million, the full amount sought by the FDIC, and the largest damages award ever made against an accounting firm.
