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US fund sues Malaysia’s IHH, seeks US$6.5Bn over alleged damages

US fund sues Malaysia’s IHH, seeks US$6.5Bn over alleged damages
US fund sues Malaysia’s IHH, seeks US$6.5Bn over alleged damages

In a lawsuit against IHH Healthcare as well as other defendants, a US fund is reportedly claiming over US$6.5 billion (S$8.8 billion) in alleged damages, the Singapore-listed business disclosed through a bourse filing.

The case stems from IHH's subsidiary obtaining shares in India's Fortis Healthcare in 2018. The US fund, Emqore Envesecure Private Capital Trust, claims it lost money because the defendants allegedly plotted to sabotage a planned share acquisition between Fortis and Emqore's  predecessors.

After a high-profile, heated bidding war between international and domestic companies, Malaysia's IHH had made an investment in India's Fortis in 2018.

The lawsuit involves 28 defendants as well as 20 non-party defendants. According to IHH, as a result of the long list of defendants, estimating the liability deriving from the lawsuit to the company is not possible at this time.

IHH feels that it has solid grounds for the suit’s dismissal and does not anticipate any operational or financial impact for the time being. IHH now intends to file a legal motion to dismiss the amended Emqore complaint based on three grounds; ‘forum non conveniens’, lack of personal jurisdiction, and failure to claim for relief.

The ‘forum non conveniens’, a common law doctrine, permits courts to dismiss a matter when some other court, or forum, is far more fitted to take up the case. This dismissal has no bearing on the defendant's ability to re-file the lawsuit in a more suited forum.

The case was first filed by Emqore in June 2020. The initial complaint as well as Emqore's subsequent motion to revise it, was served to IHH in July of last year. The motion had been awaiting adjudication until Emqore's revised lawsuit was filed in US District Court on December 3rd.

On Wednesday, the mainboard-listed counter closed at $2.20, about one cent or 0.45% down.

Source credit: https://www.straitstimes.com/business/companies-markets/us-fund-sues-ihh-healthcare-for-88-billion-over-alleged-losses

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.