Ex AIG Staff Slams Board, PwC for Lax Audit

Lucas Gilmore, “Big 4″ observer
January 04, 2011 /

Accounting firm Pricewaterhouse Coopers, which audited the alleged inflated financial statements of American International Group (AIG), was named defendant in a lawsuit filed January 4 in a Manhattan federal court, Reuters reported.

Wanda Mimms, a former AIG employee who filed the lawsuit, claimed that Pricewaterhouse Coopers overlooked the inflated share price of AIG incentive plan when it conducted its audit. Mimms filed the lawsuit in behalf of AIG Incentive Savings Plan.

AIG incentive plan’s shares in the company covered the period from February 2008 through late January 2009, Mimms said. She argued that accountants from PwC should have been alarmed by the faulty financial statements of the inflated share prices of AIG incentive plan.

Mimms also lamented that AIG’s board of directors neglected her plea in September 2010 initially forwarded to its investment committee in July for a suit against the accountants following the losses in the plan.

Mimms sought relief from PwC for the losses in AIG incentive plan.

 

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