PwC Fails In Bid To Toss FDIC's $1B Negligence Suit

Law360, New York (September 10, 2013, 8:11 PM EDT) -- An Alabama federal judge on Tuesday refused to dismiss an Federal Deposit Insurance Corp. lawsuit against PricewaterhouseCoopers LLP over its auditing of Colonial Bank, which collapsed after the bank became ensnared in the massive Taylor Bean & Whitaker Mortgage Corp. mortgage fraud scheme.

Chief U.S. District Judge W. Keith Watkins rejected PwC and fellow defendant Crowe Horwath LLP's argument that federal law, not state law, determined whether the wrongdoing of Colonial Bank insiders could be legally attributed to the FDIC, allowing the agency to keep pursuing...
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