July 22, 2018

Is PwC on the Ropes in the MF Global Trial?

pwc-mf-global-trial-motion-causation

How are you, PwC?

Week 2 in the trial between MF Global and PwC started off interestingly enough: PwC wants the judge to consider declaring a mistrial. The reason? The firm’s lawyers claim that the plaintiffs have “changed its theory of why the brokerage failed” calling it a “trial by ambush.”

MF Global’s attorneys see it differently, of course. Here’s what Dan Fetterman, the lead attorney for MF Global said:

“This motion is extremely untimely,” he said. “We are entitled to try causation as the evidence comes in. … This is way too late, highly prejudicial. It is gamesmanship.”

In a statement forwarded to Going Concern by a spokesman for the plaintiffs, Mr. Fetterman added, “This is a desperate motion you make when you are losing.” (You can read a copy of the motion at the link below.)

If you recall, PwC settled in its lawsuit with the bankruptcy trustee of Taylor, Bean & Whitaker last August in the middle of the trial. Can’t help but wonder if their lawyers find themselves on similar footing here and starting to pull out all the stops.

Reuters quotes Judge Victor Marrero as saying, “This is obviously a major issue, a complicated subject,” and that he gave the plaintiffs until tomorrow to respond. We’ll continue to watch this story.

[Reuters, Motion To Bar New Causation Theory]

Correction: An earlier version of this article erroneously stated that PwC settled a lawsuit with Colonial Bank.

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In Case You Need Another Reason to Hate the French

french flag.jpgWalking around the PwC office in Midtown Manhattan, our blogospondent in the field happened across a couple of young ladies having the picture taken in front of the P Dubya sign out front, proudly posing as if it was their names on the building at 300 Madison.
Said blogospondent approached the young ladies and asked if they worked at the P Dub and they responded in heavily French accents, “yes”. As result of further prying, it was revealed that the ladies do work a lot during “busy times”, sometimes between 50 and 60 hours a week!
This compared to an American tax associate who we spoke to just a couple days before who, in the last fifteen days, had worked 185 hours.
Let’s recap: America – 185 hours in 15 days in the middle of June vs. France – 50-60 hours in one week during the “busy time”.
American vitriol towards the French may now ensue.

Jeremy Newman Just Wants to Be Clear, We are NOT Declaring Victory Over Banco Espirito…YET

BDO_International.pngAfter throwing an all night rager last week when BDO International Global Coordination skated on the $521M verdict, Jeremy Newman, BDO Boss, wants everybody to chill.

Newman said he had always been confident that BDO International’s arms-length approach would be proved but added: ‘There is still the risk of a further appeal, as well as the appeal by the US firm.’

See? Staying cool. Not out of the woods yet. But when we beat those bastards on appeal, then we are getting down.

Newman stays cool after BDO victory
[Accountancy Age]