Friday 17 January 2020

Ex-FBI's Louis Freeh Hired by NMC Health to Probe Muddy Waters - Bloomberg

Ex-FBI's Louis Freeh Hired by NMC Health to Probe Muddy Waters - Bloomberg:

NMC Health Plc hired former FBI Director Louis Freeh to investigate allegations by short seller Muddy Waters Capital LLC of financial wrongdoing by the hospital operator.

The appointment is part of NMC’s effort to restore investor confidence. The company’s shares have plunged 44% since Muddy Waters said in a Dec. 17 report that NMC’s financial statements hint at potential overpayment for assets, inflated cash balances and understated debt. The stock rose as much as 7.8% Friday in London.


NMC, which previously called the allegations “unfounded, baseless and misleading,” last month appointed a committee of independent board members to look into the matter. The panel is focusing its review initially on confirmation of the company’s cash balances as of Dec. 15, the United Arab Emirates-based company said in a statement Friday.

“The committee chose Freeh Group to provide a completely independent, unbiased, comprehensive and transparent report that will address all of these allegations,” said Jonathan Bomford, chairman of the committee.

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