Equitable Drops Court Case
Equitable drops multi-million pound court case in the 'biggest climbdown in legal history'
22nd September 2005
Troubled insurer Equitable Life has dropped its court case against auditors Ernst and Young in what's been described by E&Y lawyer Mark Hapgood QC as the 'biggest climbdown in English legal history'.
The insurers originally sued the auditors for £2bn for their alleged role in the near-collapse of the company which saw a million people's retirement savings and investments slashed in value. Later, Equitable slashed the size of it's claim to £700m after information was disclosed suggesting the case was on shakey ground.
The case has now been formally abandoned, but only after incurring costs estimated at £60m which will inevitably be borne at least in part by the remaining policyholders.
Meanwhile, the seperate but concurrent action by Equitable against 15 former directors has been adjourned for a week.
Read More: Money Guardian: Equitable abandons high court claim
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