Equitable Life and E&Y in Pounds 3.75bn Court Battle

Summary


Equitable Life takes its former directors and auditors Ernst & Young to court today, seeking pounds 3.75 billion damages for alleged failure to warn of impending collapse because of over- generous guarantees.

The claim is the largest brought against private individuals or an auditor in the UK and sets a precedent by targeting non- executive directors as well as their executivecounterparts. Over the past few months, Equitable and E&Y have engaged in a phoney war, each expecting victory, but they have also said the case will cost them pounds 30 million or more each, and with reputations also at stake, an expensive battle looms.

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Extract


Equitable Life and E&Y in Pounds 3.75bn Court Battle

"There is the legal cost if the case dragged on, and the li...

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