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People walk past the NMC specialty hospital in Abu Dhabi, United Arab Emirates, February 11, 2020. — Reuters pic
People walk past the NMC specialty hospital in Abu Dhabi, United Arab Emirates, February 11, 2020. — Reuters pic

LONDON, April 30 — Auditor EY is facing a US$2.5 billion (RM10.8 billion) lawsuit in London over alleged negligence in its audits of bankrupt UAE hospital firm NMC Health.

NMC’s administrator Alvarez & Marsal has launched legal action against EY’s UK division regarding audits on NMC accounts between 2012 and 2018.

The amount of damages could reach US$3.0 billion, a source close to the matter told AFP yesterday.

Alvarez & Marsal confirmed yesterday that it has begun the legal action.

EY UK added in a statement to AFP that it will defend itself against the claim.

“We are aware a claim has been submitted to the court by the administrators of NMC Health Plc. We will defend the claim vigorously,” it said.

The United Arab Emirates-based hospitals group, which was listed on the London Stock Exchange, collapsed in early 2020 after massive accounting irregularities were discovered. — AFP

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