Yahoo Finance NMC Shareholder Notice: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In NMC Health Plc To Contact The Firm
New York, New York--(Newsfile Corp. - May 7, 2020) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in NMC Health Plc ("NMC" or the "Company") (OTC Pink: NMHLY) of the May 11, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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If you invested in NMC stock or options between March 13, 2016 and March 10, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/NMHLY. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased NMC securities between March 13, 2016 and March 10, 2020 (the "Class Period"). The case, Shengming Huang v. NMC Health Plc et al., No. 2:20-cv-02895 was filed on March 27, 2020, and has been assigned to Judge Consuelo B. Marshall.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) NMC lacked effective internal controls and risk management; (2) NMC 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 NMC's business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On December 17, 2019, Muddy Waters Capital LLC published a report explaining that NMC had misled investors and failed to disclose: (1) its lack of internal controls; (2) (de facto) related party transactions; (3) its true debt burden; (4) its true cash-on-hand and asset values; and (5) its use of reverse factoring.
On this news, the Company's stock price fell from $34.68 per share on December 16, 2019 to $23.00 per share on December 17, 2019: a $11.68 or 33.68% drop.
Then, on January 8, 2020, NMC issued a press release entitled "KBBO pricing announcement" which acknowledged and downplayed Defendant K. Bin Butti and H.E. Bin Butti's 31.2 million shares sell-off, which equates to roughly 15% of the Company, from January 7, 2020.
On this news, the Company's stock price fell, over two days, from $22.84 per share on January 6, 2020 to $16.36 per share on January 8, 2020: a $6.48 or 28.37% drop.
Then, on February 14, 2020, NMC issued a press release with preliminary share data, unverified, provided by Defendant K. Bin Butti, H.E. Bin Butti, and Defendant Shetty. The press release confirmed the need for greater clarity from its long-time principal shareholders, stating:
The Company continues urgently to seek clarity from Dr. B.R. Shetty, Khalifa Bin Butti and H.E. Saeed Bin Butti in relation to the above arrangements and their respective shareholdings, and encourages Dr. B.R. Shetty, Khalifa Bin Butti and H.E. Saeed Bin Butti, and their advisers, to agree the legal position in relation to the ownership of the Ordinary Shares in question without further delay.
That same day, NMC announced that Defendant K. Bin Butti had resigned as a Director effective immediately.
On this news, the Company's stock price fell from $10.94 per share on February 13, 2020 to $10.40 per share on February 14, 2020: a $0.54 or 4.94% drop.
Then, on February 17, 2020, NMC announced that Abdulrahman Basaddiq and Hani Buttikhi had both resigned as Directors of the Company. Both were appointed to the Board of Directors by the principal shareholder group of Defendant K. Bin Butti, H.E. Bin Butti, and Defendant Shetty.
Then, on February 18, 2020, NMC announced an update to Defendant Shetty's shares of the Company. The update announced that a bank account for BRS International Holding Ltd, of which Defendant Shetty is the sole shareholder, had sold over 10 million shares of NMC ordinary shares between February 3 and 6, 2020.
On this news, the Company's stock price fell from $11.22 per share on February 18, 2020 to $10.48 per share on February 19, 2020: a $0.74 or 6.60% drop.
Then, on February 24, 2020, BRS International announced that Defendant Shetty "had pledged 7 million of the company's shares as security for debt" to Goldman Sachs. It was also announced that Defendant Shetty only "currently has a 9.81% interest" in NMC.
On this news, the Company's stock price fell from $11.47 per share on February 21, 2020 to $10.81 per share on February 24, 2020: a $0.66 or 5.75% drop.
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, stating the following in pertinent part:
An Abu Dhabi-owned insurer is helping NMC Health Plc pay overdue bills, according to people familiar with the matter, in what could be a sign the emirate is stepping in to help the embattled hospital operator. The National Health Insurance Co., known as Daman, is speeding up payments to Abu Dhabi-based NMC so it can pay salaries and other invoices, the people said.
On this news, the Company's stock price fell from $5.13 per share on March 9, 2020 to $1.85 per share on March 10, 2020: a $3.28 or 65.94% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding NMC's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/55503
