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PricewaterhouseCoopers' bid to dismiss a $1 billion professional malpractice lawsuit was denied by a federal judge. So reports Reuters.

PwC was said to have helped bring about the 2011 bankruptcy of MF Global Holdings Ltd, a brokerage once run Jon Corzine, former governor of New Jersey. U.S. District Judge Victor Marrero said questions remained about PwC’s role in the fall of MF Global and declined to dismiss the suit.

PwC was accused of "extraordinary and egregious professional malpractice and negligence" when approving MF Global's accounting for "repurchase-to-maturity" transactions related to Corzine’s bet on European sovereign debt. It also faulted PwC for advice on deferred tax assets that contributed to a $191.6 million quarterly loss.

Papers summarized by Marrero state PcW contests that since MF Global was an active participant in the decision making process, they should not prevail in the lawsuit.

Read the full story from Reuters.

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