NMC Health PLC
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired NMC Health PLC (“NMC” or the “Company”) (OTC: NMHLY) securities during the period from March 13, 2016 through March 10, 2020. Investors have until May 11, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that NMC failed to disclose that: (i) the Company lacked effective internal controls and risk management; (ii) the Company engaged in undisclosed and extensive related party and de facto related party transactions; (iii) NMC’s debts were significantly understated and obfuscated; (iv) NMC’s cash-on-hand figures were overstated; (v) NMC’s principal shareholders were not accurately reporting or accounting their interests or stakes in the Company; (vi) NMC did not review or know their principal shareholders’ interests or stakes in the Company; and (vii) consequently, the Company was not enforcing its Relationship Agreement with the principal shareholders.
On December 17, 2019, Muddy Waters Capital issued a report stating that there are “serious doubts about the company’s financial statements, including its asset values, cash balance, reported profits, and reported debt levels.” On this news, NMC’s ADS price fell $11.68, or 33.7%, to close at $23.00 per ADS on December 17, 2019.
Then, on February 24, 2020, it was announced that the former CEO, Joint Chairman of the Board, and founder of NMC, B.R. Shetty, “had pledged 7 million of the company’s shares as security for debt” to Goldman Sachs and that he held a significantly smaller interest in the Company than previously stated.
On this news, NMC’s ADS price fell $0.66, or 5.7%, to close at $10.81 per ADS on February 24, 2020.
Finally, on March 10, 2020, the Financial Times published the article titled “NMC Health Discovers Almost $3bn of Debt Hidden from Its Board” which continued to disclose NMC’s lack of internal controls and under reporting of debt reporting. The same day, Bloomberg published the article titled “Abu Dhabi Insurer Steps In to Help NMC Health Pay Salaries” reporting that an insurer was assisting to pay NMC’s expenses. On this news, NMC’s ADS price fell $3.28, or 63.9%, to close at $1.85 per ADS on March 10, 2020.
If you acquired NMC securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.