The administrators to NMC Health are preparing to sue EY for more than £1bn over claims the Big Four audit firm was negligent when it signed off the group’s accounts during a “long term” multibillion-dollar fraud.
NMC Health, the former FTSE 100 healthcare group, collapsed this year after discovering that more than $4bn was apparently hidden from its balance sheet in a large-scale fraud that spanned operations from Abu Dhabi to London.
EY has overseen NMC’s accounts since the healthcare company floated in London in 2012. The quality of the firm’s audits has already been questioned due to the fact that NMC’s board included former EY partners.
Administrator Alvarez & Marsal said it had hired law firm Quinn Emanuel to make a claim against EY, and had already issued a preliminary notice informing the audit firm it intended to file a lawsuit.
No comments:
Post a Comment