Federal Judge Refuses To Dismiss FDIC Suit Against Bank's Auditors

MONTGOMERY, Ala. - A federal judge in Alabama on Sept. 10 denied a motion to dismiss a suit the Federal Deposit Insurance Corp., as receiver for Colonial Bank, filed against auditors PricewaterhouseCoopers LLP (PwC) and Crowe Horwath LLP alleging that the auditors were negligent in failing to uncover fraud by a bank customer that led to the bank's closure, finding that the FDIC adequately alleged that PwC caused the bank's losses (Federal Deposit Insurance Corp., as Receiver for Colonial Bank, v. PricewaterhouseCoopers LLP, et al., No. 12-0957, M.D. Ala.).

Access this news story on lexis.com®