EQUITABLE LIFE has offered to abandon its £1.7bn lawsuit against 15 former directors in return for a deal on legal fees, reports the Times .
The offer comes just days after the collapse of the insurer’s £2 billion action against Ernst & Young, says the Times.
The insurer is understood to have offered to abandon the claim as long as both sides pay their own costs. The 15 former directors, who are accused of negligence in their running of the insurer, all deny any wrongdoing.
A similar settlement was struck with Ernst & Young (E&Y), the insurer’s former auditors, last week as Equitable dropped the last £700m claim of its original £2bn lawsuit. Its move was dubbed as “the biggest climbdown in English legal history” by Mark Hapgood, QC, acting for E&Y.
FURTHER EVIDENCE of renewed investor confidence emerged yesterday, after a near-11-fold increase in new investment-fund business last month, says the Scotsman.
Private investors are flocking back to the stock market, according to data from the Investment Management Association (IMA).
Net retail sales of unit and investment trusts and related products rocketed 1,099 per cent to £815m in August from just £68m in the same period last year, which followed a nine-fold surge in net retail sales in July, up 902% on the year to a two-year high of £852m.
A CITY-BASED securities broker run by a direct descendent of the Duke of Wellington has been named as the company used as the London link in an alleged $101m banking fraud involving collapsed hedge fund Bayou, according to the Daily Telegraph.
Court papers filed by the Arizona Attorney General Office say $101m of funds in the name of Majestic Capital Management were deposited with London-based ODL Securities, run by Graham Wellesley, who holds the title Viscount Dangan, before they were sent on to US bank Wachovia from where they were seized on 19 May.
In the papers, the attorney-general said US courts had "probable cause that the seized funds were in the process of being used in a fraud on various financial institutions".
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