Global accounting firm EY has agreed to pay more than $140 million to settle a High Court legal dispute with the administrators of NMC Health, the former London-listed healthcare company that collapsed amid allegations of massive fraud and hidden debt. The confidential settlement ends a years-long court battle in which administrators accused the auditing firm of negligence, breach of contract and failure in its duty of care during audits conducted between 2012 and 2018.
The administrators, Alvarez & Marsal, disclosed in a recent report that NMC Health received approximately $141 million as part of the litigation resolution. The original lawsuit sought nearly $2.7 billion in damages, making it one of the most significant legal claims ever faced by a major audit firm in the United Kingdom. EY had consistently denied all allegations and maintained that it was itself a victim of the events surrounding NMC’s collapse.
The settlement was reached earlier this year without any admission of liability from EY. A spokesperson for NMC’s administrators confirmed that the dispute with the company’s former statutory auditor had been resolved confidentially, with no further details disclosed publicly.
The report also revealed that nearly $64 million from the settlement proceeds has already been used to repay litigation funding costs, including an additional agreed return of approximately $30 million to funders who backed the legal case.
Separately, administrators reached another confidential settlement in March with a former unnamed director, from which they expect to receive around $1.1 million.
The EY settlement is distinct from a much larger ongoing fraud trial in Abu Dhabi involving claims worth approximately $5.4 billion. The case targets NMC founder Bavaguthu Raghuram Shetty, former chief executive Prasanth Manghat and Bank of Baroda. The lawsuit alleges that Shetty and Manghat committed fraud against the company while accusing the bank of knowingly facilitating the misconduct. All parties have denied wrongdoing.
NMC Health was once regarded as one of the Middle East’s biggest healthcare success stories. Founded in the United Arab Emirates, the company expanded operations across 19 countries, including the United Kingdom, where it owned Aspen Healthcare. At its peak in 2018, NMC was valued at roughly $11.5 billion on the London Stock Exchange and was a member of the prestigious FTSE 100 index.
The company’s downfall began after allegations raised by US short-seller Muddy Waters Research questioned NMC’s accounting practices and corporate governance. Subsequent investigations uncovered approximately $8.8 billion in previously undisclosed debt, plunging the healthcare group into crisis and wiping out investors.
The collapse triggered creditor claims totaling around $4.5 billion and rapidly became one of the largest corporate scandals ever linked to the Gulf region. NMC’s operating businesses eventually exited administration in the UAE in 2022, but legal disputes tied to the scandal continue across multiple jurisdictions.
Administrators stated that unsecured creditors are still expected to receive payments, although the timing and size of future distributions will depend heavily on the outcomes of ongoing litigation. The administration costs themselves continue to rise, with Alvarez & Marsal’s estimated fees now reaching approximately $92 million.
Shetty has denied acting dishonestly or benefiting improperly from transfers connected to the alleged fraud and has described himself as a victim of a sophisticated scheme. Bank of Baroda has also rejected accusations that its employees knowingly participated in wrongdoing, while former chief executive Manghat has similarly denied all allegations.
