Shareholders, creditors and brokers are planning to launch a multi-million pounds damages suit against Independent Insurance's former directors, auditors and government regulators, Insurance Times has learned.
The class action is being organised by London law firm Class Law which is acting for Prudential policyholders angry about the insurer's allocation of its orphan funds.
It is aiming to recover monies owed to the parties and to secure substantial damages for alleged negligence.
Stephen Alexander, partner in Class Law, said: “We are communicating with a number of parties comprising brokers, creditors, policyholders and shareholders including employees, with a view to bringing an action against the directors and auditors of Independent, the Financial Services Authority and the Department of Trade and Industry.”
He added the action would include individual directors such as Michael Bright, the former chief executive of Independent Insurance who resigned without compensation from the insurer after it stopped writing new business on June 12.
Alexander said the interested parties will be meeting next week to discuss their approach to the class action.
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