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FDIC Settles With Pricewaterhouse Coopers Over Failed Bank Audits

The Federal Deposit Insurance Corporation Friday said it reached a $335 million settlement with PricewaterhouseCoopers LLP related to professional negligence claims.

FDIC had brought professional negligence claims against Pricewaterhouse 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 Pricewaterhouse liable for professional negligence in its audit of Colonial Bank.

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.

Colonial Bank of Montgomery, Alabama 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.

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