CNN reports that auditor PricewaterhouseCoopers (PwC) has now agreed to pay $21.5m to settle lawsuits brought by creditors and shareholders of Anicom, a former client company, who claimed that the firm was reckless in certifying the corporate's books.
The settlement is one of the largest made to date over audit failure claims, although PwC denies any wrongdoing. The firm had been accused of taking undue care in respect of its audit responsibilites in the years leading up to Anicom's bankruptcy in January 2001.
A PwC spokeman has been quoted as saying: 'We believe the work we performed for Anicom complied fully with applicable auditing standards and federal securities laws.' Then why settle ?