One day after we discussed the litigation exposure for Big 4 auditors we see that PricewaterhouseCoopers has agreed to pay $97.5 million to settle litigation brought against it in a securities class action led by the Ohio AG’s office in connection with American International Group. PwC was the auditor for AIG.
The Ohio AG’s office stated that the $97.5 million settlement was “one of the 10 highest settlements to be paid by an accounting firm to settle a securities fraud class action.” The case at issue was filed back in 2004. According to the Columbus Dispatch, the Ohio AG’s office stepped in to represent the Ohio Public Employees Retirement System, the State Teachers Retirement System and the Ohio Police & Fire Pension Fund.
The lawsuit alleged that PwC issued “unqualified audit opinions on AIG’s financial statements,” according to the Dispach article. The case continues in the SDNY against AIG and other related parties.