Equitable Life Sues Directors
£4bn case launched against 15 former directors, and auditors Ernst and Young
11th April 2005
Life insurer Equitable Life has launched a court case against former 15 former directors, and auditors Ernst and Young.
It is claiming £2bn from each group, alleging negligence in the case of the directors and that the auditors didn't warn of problems in the life assurer's accounts.
The company claims that had the auditors made it aware of the scale of the looming problems that ultimately led to its near collapse, it may have been able to avert the huge black hole which forced Equitable to close to new business in December 2000.
It further claims that the auditors signed off unrepresentative accounts which didn't alert the manageent to the scale of the problem.
Ernst and Young have strongly denied the claims, saying that they could not have done anything to avert Equitable's problems, which an official inquiry blamed solely on the assurer itself.
Read More: BBC News
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More Equitable Life News : Equitable Life to Drop Case, Equitable Slashes Negligence Damages Claim, Equitable Boss Banned for 6 Years, Annuity holders to sue Equitable? |
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