E&Y resists Equitable writ
Attempts by troubled life insurer Equitable Life to sue its former auditor Ernst & Young could be killed if the Big Four firm succeeds in a bid to quash the writ.
E&Y has applied to the High Court to have the writ, which alleges professional negligence, to be struck out, arguing the claim was without basis.
In a statement, E&Y said: ‘We confirm that we have issued a strike out application which is consistent both with our view that there is no basis for this claim, and with our intention to defend the claim vigorously.’ E&Y was auditor to Equitable from 1991 to 2000, when it was replaced by PricewaterhouseCoopers.
The life insurer issued the writ against E&Y in April this year – at the same time it started proceedings against 15 former board directors.
A spokesman for Equitable said: ‘We are moving ahead with our important claim against the auditors.’