Taylor Bean Says PwC's Negligent Audits Missed Fraud
By Nathan Hale
Law360, Miami (October 30, 2013, 8:56 PM ET) -- Taylor Bean & Whitaker Plan Trust filed suit in Florida state court Tuesday against PricewaterhouseCoopers LLP, claiming the accounting firm was negligent in its audits of Colonial BancGroup Inc., missing a multibillion-dollar fraud carried out by now-bankrupt Taylor Bean & Whitaker Mortgage Corp. and bank executives.
The trust, formed as part of Taylor Bean's bankruptcy plan, says that as a result of PwC's negligent misrepresentation of the audits, Taylor Bean incurred billions in debt that it cannot repay. It seeks actual, compensatory and consequential damages; rescission...