Following a letter sent to policyholders, legal professionals have warned Equitable Life's board that they may be in contempt of court. The board wrote to members detailing the lead-up to the collapse of the auditors, Ernst & Young trial, but the letter paraphrased evidence given by the former directors, where a case against them is still being pursued. Equitable Life have claimed the policyholders letter was certified as safe by their legal team. The decision to drop the case against the auditors has angered many policyholders, who believe the cost of continuing the case would have been small compared to the sum already spent. It had apparently cost policyholders £50 per head and if the case was seen through to the end, it would have only cost another £30.
Our view:
We would tend to agree with the policholder action group. The damage is done, dropping the case means money has just been wasted.