In a judgment handed down on 26 August 2026, Deputy High Court Judge Patrick Fung rejected an application by PricewaterhouseCoopers International Ltd (PwCIL) to be struck out of the multibillion-dollar litigation brought by China Evergrande Group’s court-appointed liquidators (Edward Middleton and Tiffany Wong of Alvarez & Marsal).
The liquidators are seeking up to RMB 57 billion (US$8.5 billion) in damages against PwCIL, PwC Hong Kong, and PwC mainland China over alleged audit negligence. PwCIL argued that as an umbrella coordinating network entity with no direct contract with Evergrande, it owed no duty of care. The Court held that full discovery and interrogatories are required, refusing to allow the global network vehicle to sever itself from domestic audit claims at an interlocutory stage.
- Practice Impact: Establishes a major tactical precedent for offshore liquidators seeking to extend auditor liability claims beyond local operating partnerships to global umbrella coordinating networks.
- Sources: Read coverage via International Accounting Bulletin and Insurance Journal Analysis.
Hong Kong: High Court Rejects PwC Global Network's Bid to Exit Evergrande Lawsuit