Equitable Life has begun its multi-million lawsuit at the High Court against former auditors and directors who worked for the company prior to its near-collapse.
Accountancy firm Ernst & Young is being sued for £2bn while a second claim has also been put in against 15 former executive and non-executive directors who worked at the firm between 1996 and 2001. The beleaguered Society alleges negligence and breach of duty on the part of E&Y as the company did not sufficiently explain how much guaranteed annuity rates could affect the company’s finances. Similarly, Equitable Life’s current management argues E&Y did not state in the 1999/2000 accounts report the possible financial risk if the Society lost its High Court GAR case. Former directors...
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