In a major legal turn, the Supreme Court of the State of New York dismissed an $8 billion lawsuit brought by Dr. BR Shetty, founder of NMC Health, and Neopharma LLC. The lawsuit targeted the Bank of Baroda, Credit Europe Bank, and audit firms Ernst & Young LLP and Ernst & Young Middle East, among others. Shetty accused these entities of concealing financial fraud, which he claimed led to the downfall of his healthcare empire, NMC Health.
Judge Joel M. Cohen, presiding over the case, concluded that New York was not the proper jurisdiction for the lawsuit. The court’s decision, delivered on July 10, stipulated that the dismissal was “without prejudice,” allowing Shetty to potentially refile the case in a more suitable jurisdiction, provided the defendants accept court service processes.
NMC Health, once a prominent healthcare provider in the UAE, faced financial scrutiny in 2019 over misleading debt statements, culminating in its delisting from the London Stock Exchange and subsequent administration. The lawsuit also implicated former executives, including Prasanth Manghat and Promoth Manghat, accusing them of forging Shetty’s signatures to secure fraudulent loans, allegedly unflagged by the banks and auditors.
The New York court’s dismissal followed the defendants’ motion, citing reasons such as forum non-conveniens and lack of jurisdiction. This ruling marks a significant point in the ongoing saga surrounding NMC Health’s collapse.
