Big Four accountant PwC thrust into £637m Watchstone court battle
- PwC is accused of leaking confidential information about Watchstone to buyer
- Watchstone has argued the information gave the buyer unfair leverage
PWC has been dragged into a £637million court battle involving a scandal-hit insurer.
A senior figure at the accountant is accused of leaking confidential information about Quindell, now known as Watchstone, to a firm to which it was selling its professional services division to.
Watchstone has argued the information – allegedly leaked via a secret ‘back channel’ – gave buyer Slater and Gordon (S&G) unfair leverage in takeover talks that allowed it to secure a lower price.
A senior figure at PwC is accused of leaking confidential information about Watchstone to a firm to which it was selling its professional services division to
The revelation is the latest twist in the long-running High Court tussle between S&G and Watchstone. S&G bought Quindell’s professional services division in 2015 for £637million.
But two years later S&G sued Watchstone and accused it of misrepresenting the true value of the business.
That followed an accounting scandal at Quindell, unearthed by PwC. S&G has since argued it was not provided with information about Quindell’s businesses before the takeover.
But now Watchstone has revealed emails which allegedly show S&G had been receiving confidential information about Quindell via a PwC staff member.