Equitable Life has slashed its negligence claim against former auditor Ernst & Young, from...
Equitable Life has slashed its negligence claim against former auditor Ernst & Young (E&Y), from £2bn to £700m.
Vanni Treves, the Equitable chairman, said that the insurer was now focusing on its other claims which included alleged audit failure and that it did not expect the cut in its negligence claim to weaken the overall claim it expected at the conclusion of the trial.
Treves yesterday accused the accountancy firm of trying to "defend the indefensible" and called on them to admit professional negligence. However, E&Y said they were determined to press forward with their defence and remarked that the insurers abandonment of their sales claim "shows what a desperate state their case is in".
The case is not due to finish until the end of next year.
