Equitable Life has paid out £10 million to end its high court case against nine former directors. After four years, and paying out an estimated £35 million to law firm Herbert Smith, they have announced that they have paid a further £10 million to end the legal action.
Equitable Life are understood to be making contributions towards the nine former directors legal costs.
In September, the provider chose to settle its claim against Ernst & Young, and then later struck a deal with six other directors on the basis that each side met its own costs. The 'costly conclusion' of the case, which Equitable Life hoped to result in a £650 million win, has come under fire from policyholders, saying that the case was 'a reckless adventure paid for by the victims of the scandal'
The company have denied this, claiming that £35 million had already been set aside in the society's accounts, and that the balance would have no impact on benefits received by their members.
Our view
The only winners, as ever in action are lawyers and losers are the people! Think carefully before you take an action.