A federal judge rejected PricewaterhouseCoopers' bid to dismiss a $1bn lawsuit accusing the accounting firm of professional malpractice for helping cause the October 2011 bankruptcy of MF Global Holdings, a brokerage once run by former New Jersey Governor Jon Corzine.
Reuters reports that in a 69-page decision made public on Friday, U.S. District Judge Victor Marrero in Manhattan said there remained open questions concerning whether PwC's alleged bad accounting advice was a substantial cause of MF Global's rapid demise.
"PwC has not satisfied its burden of demonstrating the absence of any genuine issue of material fact," Marrero wrote.
Corzine is not a defendant in the lawsuit, which was filed in March 2014 by MF Global's bankruptcy plan administrator.
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