Equitable Life has withdrawn its £1bn "lost sale" claim against 11 of the Society's former directors.
The Society says the other claims against the former directors continue, as Charles Thomson, the Society’s chief executive, says: “We have taken the pragmatic decision to withdraw the lost sale claim. This will speed up the process and reduce overall costs.”
The case has so far cost the mutual an estimated £30m and less than a month ago Equitable Life chairman Vanni Treeves and chief executive Charles Thomson were facing calls for their resignation by policyholders in reaction to the news that the Society had dropped its case against its former auditors Ernst & Young.
The case has been adjourned until 20 October but legal costs for the dropped claim are expected be resolved once the whole case comes to an end, and Equitable may find itself footing the bill for the dropped lost sale claim.
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Paul Bruns and Elaine Parkes
3,000 left to transfer
Record numbers of people aged 90 plus
From 3 to 10 October