PwC settles with MF Global over final major lawsuit brought by creditors

Oliver Gill
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MF Global Holdings Ltd Files For Bankruptcy
US brokerage firm MF Global collapsed in 2011 (Source: Getty)

PwC and MF Global have a settled over a $3.0bn (£2.4bn) US lawsuit over claims the Big 4 accountancy firm was negligent in the collapse of the US brokerage firm.

MF Global, once run by former New Jersey politician Jon Corzine, collapsed in October 2011.

The lender's administrator blamed PwC for accounting practices on "repurchase-to-maturity" transactions and changing its advice on deferred tax assets. Both practices led to significant writedowns.

Read more: MF Global brokerage starts payouts

"The case has been settled to the mutual satisfaction of the parties," the parties said in a statement.

The lawsuit is the last major piece of litigation brought by MF Global's administrator, hedge fund founder Nader Tavakoli, on behalf of creditors.

Corzine, testified he had trusted PwC because of its reputation. He added the European debt investments were low-risk investment that ultimately paid in full.

Read more: PwC fined $25m for hiding bank information from US regulators

In January, Corzine agreed to pay $5m and accept a lifetime US Commodity Futures Trading Commission ban to settle claims by that agency.

PwC previously reached a separate $65m settlement with MF Global investors in April 2015, also denying any wrongdoing.

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