EY denies negligence over audits of collapsed NMC Health
EY’s UK business has denied it was negligent in its audits of NMC Health, the collapsed former FTSE 100 hospital operator, in a $2.7bn court battle that will renew focus on the scope of auditors’ duty to detect fraud.
Abu Dhabi-based NMC entered administration in April 2020 after it was targeted by short sellers in 2019 and the subsequent discovery of $4bn of debt that had been hidden from its balance sheet. The case is one of the biggest frauds ever alleged at a FTSE 100 company.
The legal claim, filed in London’s High Court by NMC’s administrators in May, alleged a string of shortcomings by EY, including a failure to spot that its client’s accounts were fraudulently misstated and that NMC did not keep proper accounting records.
This story originally appeared on: Financial Times - Author:Michael O’Dwyer
