2nd Circ. Revives Lawsuit Over PwC Valuation

Law360, New York (November 8, 2013, 6:07 PM EST) -- The Second Circuit on Friday reopened a lawsuit in which investors claim PricewaterhouseCoopers LLP auditors helped hide the poor finances of a now-defunct hedge fund, saying there is adequate evidence of possible wrongdoing to go forward.

A jury could find that PwC overvalued stakes in the fund Lipper, a three-judge panel said in a written opinion.

“A jury reasonably could find that the plaintiffs purchased their interests at fraudulently overvalued prices,” the panel said.

Lipper, which operated from 1995 to 2002, invested in so-called convertible securities,...
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