Link: E&Y drops appeal case
A legal expert close to the case told Accountancy Age that ‘on paper it doesn’t look too bad’ and that if the court did strike the case out, it is more than likely to end in settlement.
‘Historically, enormous claims cases end up settling for a great deal less than first thought,’ he said.
He went on to say that E&Y has a good chance because cases such as the one Equitable is pursuing are notoriously difficult to prove.
‘The Equitable claim for loss is a difficult one,’ he said. ‘It [Equitable Life] is saying that it lost the opportunity to sell itself for a particular price.
‘That’s a hard call because it’s saying that an auditor should preserving the price of a company.’
The application with the High Court will be heard at the beginning of the court term in the new year.
‘E&Y has made an application to strike out the claim because we believe it has no basis,’ said a spokesman. ‘In the meantime the firm will continue to defend the claim vigorously.’
Equitable Life, however, remains defiant. ‘We have a strong case and will be pursuing it,’ a spokesman said.
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