Refco Report Punctures Hedge Fund Claims Against PwC

Law360, New York (August 10, 2011, 5:40 PM EDT) -- A special master on Wednesday advised a New York federal judge overseeing the Refco Inc. multidistrict fraud litigation to toss a hedge fund’s malpractice and fraud claims alleging former auditor PricewaterhouseCoopers LLC is liable for $263 million it lost in the scam.

The liquidator of the Sphinx Ltd. family of hedge funds cannot pursue accounting malpractice claims against its auditor, or allege that the accounting firm, which also served Refco, defrauded the hedge fund after failing to warn it that Refco had moved its cash to...
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