VTech files suit against PricewaterhouseCoopers

VTech Holdings Ltd today announced that VTech has been compelled to commence litigation in the United States against PricewaterhouseCoopers.

The suit, filed in the Federal court in New York City, seeks damages against PricewaterhouseCoopers arising out of project work engaged in by PricewaterhouseCoopers regarding the acquisition by VTech of the Lucent Wired Business in 2000.

VTech has attempted to settle its claims without resort to litigation, but PricewaterhouseCoopers has not been responsive. VTech settled its claims against Lucent concerning the acquisition by VTech of the Lucent Wired Business in July 2002.

In connection with VTech’s claims, PricewaterhouseCoopers has resigned as VTech’s auditors and VTech has appointed KPMG as its new auditors.

VTech is a leading consumer-focused technology company. It designs, manufactures, markets and sells electronic learning and telecommunication products through its extensive international distribution network.

With its excellence in technology manufacturing, the Group also provides highly sought after contract manufacturing services. With turnover of $959.8m (€890m) in the financial year 2002, VTech currently has a presence in 10 countries.

The Group invested $33.0m (€30m) in R&D in the financial year 2002 and launches more than 80 innovative and high quality products.