PricewaterhouseCoopers agreed in March to pay $30 Million in a settlement regarding its role as an auditor to Metropolitan Mortgage in Washington State.
Here is the original Complaint:
Metropolitan Mortgage vs PriceWaterhouseCoopers: Complaint for Professional Negligence, Negligent Misrepresentation, and Breach of ContractIt is worth watching the issues that are litigated with respect to the role played by the big four audit firms in the bubble and bust of the US housing market. If Arthur Anderson was prosecuted for its role in Enron, what accountability is called for with respect to auditors of leading lenders in the mortgage markets?
PricewaterhouseCoopers has traditionally played a significant audit role in the US mortgage and financial markets. Price served as auditor to the Federal Housing Administration for the first half of the ’90’s, has been or is auditor to Freddie Mac, the Federal Home Loan Bank Board Office of Finance, JP Morgan-Chase, Bank of America, Goldman Sachs, and the Governors of the Federal Reserve and all twelve Federal Reserve banks.
For more documents in this case:
PWC’s Memorandum RE Motion to Dismiss
PWC’s Appendix to Motion to Dismiss
Order Denying PWC’s Motion to Dismiss
Docket Report
Order Authorizing Compromise of Claims, Approving Settlement Agreement . . .
Plaintiff’s Response to PWC’s Request for Judicial Notice
Order Staying Litigation Pending Approval of Settlement
PWC’s Objection to Settlement Agreement RE Bar Order (relative to Third-Party Claims)
Application for Admissions Pro Hac Vice By Kenneth P. Herzinger
