E&Y to face action over Equitable
Equitable Life is gearing up to launch legal action against Ernst & Young over its involvement in the collapse of the troubled life insurer.
In a letter to shareholders, Equitable’s new chief Vanni Treves said the board at Equitable would consider suing its former auditor if it did not receive satisfactory explanations on a number of issues.
A report from law firm Herbert Smith and forensic accountants at PricewaterhouseCoopers raised ‘serious concerns’ over E&Y’s work at Equitable.
Treves said: ‘If we do not receive satisfactory explanations, and if it is cost-effective to do so, we will commence legal proceedings.’