Institutional shareholders have instructed lawyers to take legal action against Independent Insurance and its advisors, the Financial Times reported this morning.
And the Treasury will face questions this week about the insurer's liquidation, the FT said.
It said the institutions will be among the 200 creditors to meet this afternoon at the Howard Hotel in London to discuss the class action.
Meanwhile, Brent North MP Barry Gardiner has got an adjoiurnment debate in the House of Commons on Wednesday, where he plans to question the Treasury about the Financial Services Authority's role in regulating Independent.
He will also ask Economic Secretary Ruth Kelly about the role of Independent's auditors and actuaries.
