Liquidators to Independent Insurance yesterday said they would sue the collapsed company’s former auditors for a sum thought to be in the region of £300m.
Price WaterhouseCoopers liquidators Mark Batten and Dan Schwarzmann said they had served particulars of claim against KPMG and that the claim was based on alleged negligent audit work carried out by KPMG between the year ending December 31 1997 up to the year ending 31 December.
KPMG said it would vigorously defend the claim. A spokesman said: “We believe that there is clear evidence that the true state of Indpendent Insurance’s financial position was witheld from KPMG as its auditors.”
Independent’s collapse in 2001 is the subject of a continuing investigation by the Serious Fraud Office.
News of the action comes just days before Equitable Life is due to start its £2billion case against its former auditor Ernst & Young, along with a £1.7billion case against its former directors at the High Court in London.