E&Y expects latest Equitable claim to fail
Ernst & Young has responded to Friday's re-plead which saw Equitable Life being given permission to proceed with a £500m claim for damages from the Big Four firm.
The initial £2.6bn claim was thrown out at the High Court because it was seen as ‘fanciful in approach and amount’. It tried to insinuate that the life assurance firm missed an opportunity to find a buyer due to E&Y’s negligence.
The new claim focuses on bonus declarations, claiming that had the Big Four firm advised Equitable of disclosures in relation to its guaranteed annuity liabilities, it would not have issued such generous bonuses.
Ernst & Young partner Victoria Cochrane said the firm is ‘confident that the bonus claim is ill-conceived and bound to fail at trial’.