PracticeAccounting FirmsEquitable to sue E&Y

Equitable to sue E&Y

Equitable Life, the trouble life insurer, has said it will sue its former auditor Ernst & Young, in a claim that could cost the Big Five firm up to £2.6bn.

The lawsuit, which follows a report compiled by lawyers Herbert Smith last November, alleges negligence in the firm’s audit of the insurer after it ran into trouble after losing a legal battle over ‘guaranteed annuity rates’.

Herbert Smith wrote to E&Y asking it to explain its actions.

In a statement, the life insurer said: ‘The Society’s former auditors Ernst & Young have not provided a substantive reply. We have therefore started legal proceedings against them.’

But the firm has always maintained its audit was robust – it said: ‘For the record, we told Herbert Smith that they had not provided us with sufficient information for us to provide a ?substantive reply.’

It said it would be reviewing the details of the claim.

Related Articles

Johnston Carmichael CEO appointed as ICAS president

Accounting Firms Johnston Carmichael CEO appointed as ICAS president

3w Emma Smith, Managing Editor
British Accountancy Awards 2018 – entries open!

Accounting Firms British Accountancy Awards 2018 – entries open!

1m Emma Smith, Managing Editor
Is the accountancy sector facing an international talent crisis?

Accounting Firms Is the accountancy sector facing an international talent crisis?

1m Lewis Silkin
RSM appoints new Chief Operating Officer

Accounting Firms RSM appoints new Chief Operating Officer

1m Alia Shoaib, Reporter
RSM announces 11 partner promotions

Accounting Firms RSM announces 11 partner promotions

2m Emma Smith, Managing Editor
BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

2m Emma Smith, Managing Editor
What does the future hold for listed accountancy firms?

Accounting Firms What does the future hold for listed accountancy firms?

2m Fergus Payne, Lewis Silkin
EY, Deloitte lead Big Four in gender pay gap reporting

Accounting Firms EY, Deloitte lead Big Four in gender pay gap reporting

2m Emma Smith, Managing Editor