A spokesperson for the company he takes in custody NMC Health claimed to have filed a lawsuit against accounting firm Ernst & Young (EY) in the UK, accusing negligence in actions taken between 2012 and 2018, for the hospital’s operating company, which is in trouble . .
NMC, which was registered in London, ran into problems in 2020 and was placed in receivership after announcing hidden debts of over $ 4 billion.
The company’s troubles began in late 2019 when Muddy Waters raised doubts about its financial condition, causing its share value to drop sharply.
A spokesperson for Alvarez & Marsal, the joint directors of NMC, said in an email: “As part of our extensive investigation into the situation, we have looked into the role of accountants and are now taking formal legal action against EY in the UK for accounting negligence In connection with her work with the company between 2012 and 2018.
“As custodians, we have an obligation to maximize returns for creditors and this action is part of this broader effort,” the letter reads.
EY said in an email that was aware of the lawsuit and would “vigorously” defend itself.
The letters did not disclose the amount of compensation Alvarez & Marsal was claiming in the lawsuit, but press reports said the London lawsuit required $ 2.5 billion.
The core operations of NMC, the largest private healthcare provider in the UAE, rolled out of custody in Abu Dhabi in March and are now part of a new company.
However, NMC Healthcare, registered in the United Kingdom, and NMC Healthcare Limited, registered in the United Arab Emirates, are still under guardianship as they work to complete the restructuring of the two entities and resolve the legal issues related to them.
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