Deloitte has agreed to pay $34 million to settle a class-action lawsuit filed by investors of SCANA Corporation, a South Carolina utility company, after the collapse of its ambitious “V.C. Summer” nuclear project. The case highlights the growing legal and reputational risks facing global audit firms and raises fundamental questions about professional responsibility.

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Deloitte pays $34 million over failed US nuclear project audit: lessons for global firms

Background: a nuclear fiasco

SCANA launched the construction of two nuclear reactors that were meant to secure billions in federal tax credits. Instead, the project suffered chronic delays and overruns, and was abandoned in 2017, leaving investors with estimated losses exceeding $800 million.

The allegations against Deloitte

As SCANA’s external auditor, Deloitte approved “clean audit opinions” for years, despite internal warnings and clear signs that the project was not viable. According to plaintiffs, Deloitte failed in its gatekeeper role by ignoring red flags and allowing misleading financial statements to be issued.

The settlement

On 17 October 2025, Deloitte accepted the $34 million settlement without admitting liability. The firm stated that resolving the litigation was in the best interests of its stakeholders, in order to avoid further costs and distraction.

Legal implications

The settlement ranks among the largest against an audit firm in securities-related class actions in the last decade.

A U.S. federal court in South Carolina had certified the class of investors in 2024, a step that significantly increased the firm’s exposure.

The case underscores the vulnerability of the “Big Four” when their audit failures intersect with high-risk sectors such as energy and infrastructure.

Lessons for global firms

1. Professional liability is real: audit opinions are not just formalities; they can create liability when risks are ignored.
2. Class actions multiply risks: once a class is certified, potential damages escalate.
3. Compliance and expertise are critical: firms must implement robust internal review systems and bring in sector specialists when auditing complex projects.
4. Reputation matters: beyond fines, trust in the firm’s reliability is its most valuable asset.

Conclusion

The Deloitte settlement shows that even the largest global firms are not immune to litigation, regulatory scrutiny, and reputational damage. For both auditors and law firms, the message is clear: professional gatekeepers must act with diligence, transparency, and foresight—or face the legal and financial consequences.