FDIC Settles with PricewaterhouseCoopers LLP on Audits of a Failed Bank — 2019-03-15

The Federal Deposit Insurance Corporation as Receiver for Colonial Bank (FDIC) has announced a $335 million settlement with PricewaterhouseCoopers LLP (PwC) related to professional negligence claims brought by the FDIC against PwC arising out of the audits of the failed Colonial Bank. On December 28, 2017, the United States District Court for the Middle District of Alabama held PwC liable for professional negligence in its audit of Colonial Bank and, on July 2, 2018, the district court awarded damages to the FDIC on its claims. Previously, on April 3, 2018, the FDIC settled professional negligence claims against Crowe Horwath LLP arising out of its internal audits of Colonial Bank for $60 million.