Fasken successfully defended PricewaterhouseCoopers LLP (“PwC”) by obtaining summary judgment dismissing the plaintiffs’ claim in a $5 billion auditors’ negligence action. The plaintiffs, Fairfield Sentry Limited (“Sentry”), Fairfield Sigma Limited (“Sigma”), and Fairfield Lambda Limited (“Lambda”) (collectively, the “Funds”) claimed that PwC breached its contract and/or was negligent in performing the audits of the Funds’ financial statements over the course of two years prior to which the Funds had invested both directly and indirectly in a “Ponzi” scheme orchestrated by Bernard L. Madoff through his company Bernard L. Madoff Investment Securities LLC.
PwC successfully moved before Justice Frank Newbould of the Ontario Superior Court of Justice for summary judgment of the Funds’ claim on the basis that the funds had suffered no damages and there was no genuine issue regarding damages that required a trial. On August 24, 2018, the Court of Appeal for Ontario dismissed the Funds’ appeal of Justice Newbould’s decision. PwC was awarded over $1.6 million in costs for the action, motion and appeal.
Fasken advised PwC with a team including Gerald (Gerry) L. R. Ranking, Sarah Armstrong, Kimberly Potter and Robin Roddey.
