Ex-NMC Health Chairman Joins Administrators in £2 Billion Lawsuit Against EY

Lord Clanwilliam, the former audit committee chair of collapsed healthcare giant NMC Health, has agreed to support a £2 billion negligence claim against Big Four accounting firm EY. The lawsuit, brought by NMC’s administrators, centers on what they allege were significant auditing failures that contributed to one of the most high-profile corporate collapses in recent UK history.

NMC Health, once a member of the FTSE 100 and the largest private healthcare provider in the UAE, entered administration in 2020 following revelations of over $6.6 billion in undisclosed debt. The hidden liabilities were uncovered in the wake of a report by short-seller Muddy Waters, which sparked scrutiny of the company’s financial practices and its auditors.

Lord Clanwilliam

Lord Clanwilliam—who served on NMC’s board during the years in question—has settled any claims made against him personally by the administrators and will now provide a witness statement in support of their case against EY. He maintains he was unaware of any financial irregularities until the Muddy Waters report surfaced in late 2019.

His testimony is expected to offer insight into the internal governance challenges at NMC. According to court documents, his notes and messages reveal tensions within the board, concerns over leadership health, and claims that one of EY’s auditors was replaced due to his sexual orientation—an allegation that could intensify scrutiny of the audit firm’s internal practices.

The administrators, led by Alvarez & Marsal, accuse EY of gross audit failures during its engagement with NMC from its 2012 IPO up to the collapse. Specific claims include EY’s failure to thoroughly inspect NMC’s general ledger and inadequately verifying bank confirmations—oversights they argue enabled systemic fraud to continue undetected for years.

EY has denied all wrongdoing, asserting that the true culprits were NMC’s executives, who orchestrated a complex and deliberate deception. The firm argues that it was also a victim of the fraud, deceived by the very clients it was auditing.

The case is currently being heard in the UK High Court and is expected to continue through October. Meanwhile, the Financial Reporting Council is conducting a separate investigation into EY’s handling of NMC’s audits.

With Lord Clanwilliam now joining the legal challenge, the trial gains another insider perspective that may shape how liability is ultimately determined in what has become a landmark case in corporate oversight and auditing responsibility.