The Third Circuit Court of Appeals reversed a 2007 ruling that had dismissed claims against PwC by a group of unsecured creditors on behalf of AHERF. The creditors had accused PwC predecessor company Coopers & Lybrand of conspiring to hide the financial troubles of the Pennsylvania hospital system before its bankruptcy filing.
The appeals court asked the state Supreme Court for guidance on Pennsylvania’s law regarding the legal doctrine of equal fault, which the 2007 ruling had used to conclude that AHERF was at much at fault as PwC. It is unclear whether the appeals court ruling will lead to further litigation or a settlement, according to the Reuters report.
AHERF, based in Pittsburgh, once had 14 hospitals and collapsed with $1.3 billion of debt in the largest healthcare-related bankruptcy to date.
Read Reuters report on the court ruling on PricewaterhouseCoopers and AHERF.
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