Daily News: March 18, 2019

PwC Reaches $335MM Settlement with FDIC Over Audits of Failed Bank


The Federal Deposit Insurance Corporation, acting as receiver for Colonial Bank, reached a $335 million settlement with PricewaterhouseCoopers (PwC) related to professional negligence claims brought by the FDIC against accounting firm 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 arising out of its internal audits of Colonial Bank for $60 million.

Colonial Bank of Montgomery, AL failed on August 14, 2009, with $25.5 billion in assets and a loss to the Deposit Insurance Fund estimated at $2.958 billion as of December 31, 2017.