Equitable Life has dropped its negligence lawsuit, which was seeking damages of £700m against its former auditors, Ernst & Young, (E&Y).
Equitable Life said that each side would pay its own legal costs.
Vanni Treeves, chairman of Equitable Life, said that despite the company still believing its claim to be valid, it determined that “there is too great a risk that the judge would find as a matter of fact that the former directors would not have done anything differently, whatever E&Y had done and said.”
E&Y said it was “pleased, but not surprised” by Equitable Life's decision to drop its claims and chairman Nick Land said the decision was a “complete vindication” for the audit firm.
Equitable Life said, however, that it will continue to pursue a claim against 15 of its own former directors.
