PwC Gets New Look at Legal Costs in Los Angeles Fraud Suit

PricewaterhouseCoopers LLP won a second shot at recovering electronic discovery costs in a lawsuit Thursday, when a California appellate court said it did not know if the lower court, which tossed the firm’s request, used the proper discretion to review costs.

Los Angeles hired PwC in 2010 to modernize the billing system for the city’s Department of Water and Power. In 2013, while using new billing software installed by PwC, the city billed a portion of its customers incorrectly, and later sued PwC in state court, alleging the firm fraudulently induced the city to enter into the 2010 contract, and ...