March 10, 2020 - An investor in shares of NMC Health Plc (OTC: NMHLY) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by NMC Health Plc in connection with certain allegedly false and misleading statements made between March 13, 2016 and March 10, 2020.

London based NMC Health Plc provides healthcare services in the United Arab Emirates, the United Kingdom, Spain, and internationally. NMC Health Plc reported that its annual Total Revenue rose from over $1.6 billion in 2017 to over $2.05 billion in 2018 and that its Net Income increased from $185.97 million in 2017 to $248.65 million in 2018.

On December 17, 2019, a report was issued stating that there are “serious doubts about the company’s financial statements, including its asset values, cash balance, reported profits, and reported debt levels.”

Shares of NMC Health Plc (OTC: NMHLY) declined from $37.85 per share in September 2019 to as low as $16.36 per share on January 8, 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of NMC Health Plc (OTC: NMHLY) common shares between March 13, 2016 and March 10, 2020, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 13, 2016 and March 10, 2020, the defendants made false and/or misleading statements and/or failed to disclose that the Company lacked effective internal controls and risk management, that the Company engaged in undisclosed and extensive related party and de facto related party transactions, that NMC Health Plc’s debts were significantly understated and obfuscated, that NMC Health Plc’s cash-on-hand figures were overstated, that NMC Health Plc’s principal shareholders were not accurately reporting or accounting their interests or stakes in the Company, that NMC Health Plc did not review or know their principal shareholders interests or stakes in the Company, that consequently, the Company was not enforcing its Relationship Agreement with the principal shareholders, and that 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.