Cohen Milstein mulls Equitable Life action
Class action firm Cohen Milstein Hausfeld & Toll is considering launching legal proceedings on behalf of a million Equitable Life policyholders after the parliamentary ombudsman said they should be compensated.
The ombudsman Ann Abraham held that policyholders had been victims of “a decade of regulatory failure” and urged the Government to compensate them for losses incurred after Equitable almost collapsed eight years ago.
Cohen Milstein consultant Ingrid Gubbay said Equitable Life policyholders are among the most vulnerable members of society.
“[They are] elderly retirees who diligently attempted to provide for their old age and now are living and dying in poverty,” said Gubbay. “If Equitable Life victims are not fully and speedily compensated for these failures, consumer confidence in the regulators and financial products will suffer another blow.”
Cohen Milstein’s decision to pursue claims for Equitable Life comes as the Treasury today (18 July) launched a consultation into extending the statutory regime on liability for fraudulent misstatement by issuers.
The consultation is in response to Professor Paul Davies QC’s review last year that recommended that the scope of the system should be extended to provide greater security for both investors and issuers.
Readers' comments (5)
Adam Smith | 18-Jul-2008 1:37 pm
Capitalism
The superbly practical thing about capitalism is that it doesn't distinguish on motive. Whether Cohen Milstein are vultures or heroes is irrelevant: why they are trying to help these people isn't what matters, its the fact that they are. In every problem is an opportunity for the enterprising.
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Anonymous | 18-Jul-2008 1:38 pm
Equitable
It remains to be seen whether Cohen Milstein's UK arm can pull off something of this size. Yes, they crow on about getting the settlement for BA/Virgin but that was off the back of the work their US counterparts had made.
Chasing Equitable is pretty much a sure bet to get off the ground as funders will definitely come on board. But you never know it could end like them trying to fund the dairy class action... but there's no point crying over spilt milk.
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Anonymous | 18-Jul-2008 1:56 pm
Ambulance chasers
Forget vultures...I think the term often referred to lawyers working on high-volume claimant groups is...ambulance chasers.
Saying that in this scenario it's a good thing Cohen Milstein is pursuing it. The policyholders in Equitable Life are definitely the victims.
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Anonymous | 18-Jul-2008 3:19 pm
Eight years?
I don't know how well I would survive for eight years if my pension disappeared - I'm amazed it has taken this long for a decision to be reached.
Better late than never, but no matter how much Cohen Milstein get for claimants that won't reward people who have sold their houses to survive or just had a very parsimonious near-decade. Go Cohen.
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Anonymous | 18-Jul-2008 4:45 pm
Equitable
Equitable it certainly wasn't. As a victim saved by downsizing, I would certainly contribute to a fighting fund. Tell me where to start!
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