Colonial Auditor Wants FDIC's $1B Malpractice Suit Axed

Law360, New York (January 8, 2013, 2:37 PM EST) -- Crowe Horwath LLP urged an Alabama federal court Monday to toss the Federal Deposit Insurance Corp.'s suit over Colonial Bank's $1 billion loss in the Taylor Bean & Whitaker Mortgage Corp. mortgage fraud scheme, saying it alleges no recoverable damages.

In a motion to dismiss the case, which also targets PricewaterhouseCoopers LLP, auditor Crowe Horwath points to engagement letters between Crowe and Colonial parent Colonial BancGroup Inc., for whom it was performing the auditing work at issue, that prohibit the recovery of consequential and exemplary damages...
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