PricewaterhouseCoopers agreed to pay $55 million to settle a class-action lawsuit accusing it of misleading investors in feeder funds that funneled their cash to Bernard Madoff, Dow Jones Daily Bankruptcy Review reported today. The cash deal, filed in court on Wednesday, heads off a trial that would have begun this week in which investors in Fairfield Greenwich Ltd. were set to accuse PwC affiliates of negligence in connection with their work auditing Fairfield's funds, which invested with Madoff. Investors have asked a federal judge to schedule a hearing in the spring to consider the deal, reached with PwC's Canadian and Dutch units as well as with PricewaterhouseCoopers International Ltd. Read more. (Subscription required.)
For more on fraud and Ponzi scheme cases, including analysis of the Madoff case, be sure to pick up a copy of ABI’s Fraud and Forensics: Piercing Through the Deception in a Commercial Fraud Case.
