NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of investors that purchased NMC Health PLC (Other OTC: NMHLY) securities between March 13, 2016 and March 10, 2020 (the “Class Period”). Investors have until May 11, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Click here to participate in the action.
On December 17, 2019, Muddy Waters Capital LLC published a report explaining that NMC had misled investors and failed to disclose: (i) its lack of internal controls; (ii) (de facto) related party transactions; (iii) its true debt burden; (iv) its true cash-on-hand and asset values; and (v) its use of reverse factoring.
On this news, NMC’s share price fell $11.68, per share or over 33.6%, to close at $23.00 per share on December 17, 2019, from its December 16, 2019 close at $34.68.
Then, on March 10, 2020, the Financial Times published the article titled “NMC Health Discovers Almost $3bn of Debt Hidden from Its Board” which continued to disclose NMC’s lack of internal controls and under reporting of debt reporting. Further on March 10, 2020, Bloomberg published the article titled “Abu Dhabi Insurer Steps In to Help NMC Health Pay Salaries” reporting that an insurer was assisting to pay NMC’s expenses.
On this news, NMC’s share price fell $3.28 per share, or almost 64%, to close at $1.85 per share on March 10, 2020.
The complaint, filed on March 10, 2020, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company lacked effective internal controls and risk management; (2) the Company engaged in undisclosed and extensive related party and de facto related party transactions; (3) NMC’s debts were significantly understated and obfuscated; (4) NMC’s cash-on-hand figures were overstated; (5) NMC’s principal shareholders were not accurately reporting or accounting their interests or stakes in the Company; (6) NMC did not review or know their principal shareholders interests or stakes in the Company; (7) consequently, the Company was not enforcing its Relationship Agreement with the principal shareholders; and (8) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
If you purchased NMC Health securities during the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato or Marion Passmore by email at email@example.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.