At least three former directors of Independent Insurance will join the class action by at least 2,000 people against those involved in Independent's collapse.
Meanwhile, Labour MP Barry Gardiner has called for an independent, external inquiry into the Financial Services Authority's (FSA) role in regulating the failed insurer.
This is the latest news to emerge from the Creditors of Independent Insurance Group (CIIG), chaired by Argyll Insurance boss Kevin Young and advised by Class Law partner Stephen Alexander.
The directors are believed to have lost large amounts of money after the liquidation meant their shares in the company were worthless and they would not get generous redundancy packages.
Alexander said the CIIG was likely to have decided from whom it would seek compensation by September, as evidence was “raining down in bucketfulls” on the group.
He said former employees had deluged the CIIG with information on dealings within the company and many were making signed statements, particularly those who bought shares after receiving written assurances from the company on its stability.
“The evidence being obtained is that nothing going on in the company over the last few months was any different to anything that had been going on in the previous months or even years,” Alexander said.
“These troubles did not appear overnight; there was a black hole that started off as a fairly minute spot, that grew and grew and
