Equitable Cuts E&Y Claim
Compensation claim against Ernst and Young slashed to £700m
19th July 2005
Stricken insurance company Equitable life has dropped a major part of its compensation claim against former auditors Ernst and Young, cutting its damages claim from £2bn to £700m in the process.
The insurer had originally argued that had the auditors made the true state of the company's finances known, the board would have attempted to sell the business, covering a large part of the policyholders' losses which eventually occurred.
This claim was dropped after seperate reports suggested the board would have in fact cut bonuses and made other cost savings rather than attempting a sale.
In response to the news, Ernst and Young continued their strong rejection of the complaints, saying:
"Millions of pounds of policyholders' money has been poured down the drain in a speculative and irresponsible gamble that was always bound to fail"
Equitable are continuing with their parallel £1.7bn claim against 15 of its former directors.
Read More: Guardian Report
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More Equitable Life News : Equitable Life to Drop Case, Equitable Life Sues Former Directors, Equitable Boss Banned for 6 Years, Annuity holders to sue Equitable? |
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