Equitable life sues former FD
Embattled life assurance company Equitable Life is suing its former finance director Chris Headdon and 14 other former directors for £3bn on behalf of its policyholders.
The company has already announced it is suing its former auditor Ernst & Young.
The targetted former leaders – ‘executive and non-executive directors, and managers’ – were members of Equitable’s board in the Summer 2000, when the assurer lost its claim over guaranteed annuity policies in the House of Lords.
Chairman Vanni Treves said: ‘The actions or inactions of these former directors caused many policyholders substantial loss of benefits.
‘As a board we have a duty to act in our policyholders best interests no matter how difficult that duty may be.’
But life assurance analysts believe Equitable will not recover much of the money it is demanding an the suit is ‘show rather than substance.’