InterDigital Inc (IDCC)

[warbil]

wireless_wazoo is right on the money...

Ultimately, why is PWC so concerned about the disclosures of ERICY in their SEC reports and reports to shareholders. As the auditor for ERICY, PWC is like an insurance policy to creditors and shareholders of ERICY. If ERICY's financial statements are found to be materially misleading and PWC had access to the information that caused the financials of ERICY to be misleading, then PWC would likely be sued for damages suffered by creditors and shareholders. PWC must cover their respective arses to keep this from happening.

PWC does have access to all of the litigation information and representations made by ERICY's attorneys. If PWC is limited in any way from getting this information, they have no choice but to sever their relationship with ERICY or face possible lawsuits if anything goes awry. The poptential damages to PWC in this case could amount to hundreds of millions of dollars.

As I see it, the only way IDCC can lose this case is by a fluke jury decision and that is still entirely possible. The difference between the ERICY and Motorola cases is that a reputable lawfirm is now representing the interest of IDCC. In the Motorola case, most of the legal work was done by in-house counsel. IDCC was so outmaneuvered in that case it isn't even funny. Ask our beloved leader Howard Goldberg what his role was in the Motorola case. I'm also betting on a settlement between the parties before the jury verdict is read.

Thanks wireless for giving us the insight about PWC. You are 100% right on the money.

Bill