PwC, Citi, Goldman Sachs Dodge Startup Stock-Drop Suit

Law360 (February 22, 2021, 10:21 PM EST) -- A New York federal judge Monday granted a bid from PwC's Chinese unit and underwriters including Citi and Goldman Sachs to escape a proposed securities class suit alleging Chinese startup Gridsum, which PwC audited, misled investors ahead of an initial public offering.

U.S. District Judge Edgardo Ramos said in his opinion that although the investors alleged that the unit, PricewaterhouseCoopers Zhong Tian LLP, failed to meet several auditing standards, those standards are somewhat vague and the investors didn't provide facts to suggest that their alleged failure to meet the standards was motivated by fraudulent intent.

"On the whole, plaintiffs' allegations support...

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