Last week Iceland's Glitnir Bank announced that it has commenced legal action in the Supreme Court of the State of New York against Jon Asgeir Johannesson, formerly its principal shareholder, Larus Welding, previously Glitnir's Chief Executive, Thorsteinn Jonsson, its former Chairman, and other former directors, shareholders and third parties associated with Johannesson, for fraudulently and unlawfully draining more than $2 billion out of the Bank.

They are also suing the bank's auditors PricewaterhouseCoopers for malpractice and negligence. The bank claims that PwC helped conceal the fraudulent transactions that lead to Glitnir's collapse. "The Individual Defendants could not have succeeded in their conspiracy to loot Glitnir without the complicity of Glitnir's outside auditors at PricewaterhouseCoopers hf."

The bank is claiming jurisdiction in New York because Glitnir sold $1 billion in medium term notes to US investors in September 2007. Around 90% of Glitnir Bank's estimated 9,000 creditors are thought to be based outside Iceland. The litigation is being pursued by Glitnir's Winding-Up Board, which was appointed by an Icelandic Court to supervise the liquidation of the bank.