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EY and NMC Administrators Settle Nearly £2 Billion Audit Suit

The confidential agreement closes the High Court dispute over NMC’s pre-2018 audits without a judicial ruling.

Overview

  • A January 29 High Court order recorded the withdrawal of NMC’s claim with no order on damages or costs.
  • Alvarez & Marsal said the case was resolved without admission of liability and that the settlement terms remain confidential.
  • EY confirmed it is no longer in dispute with the administrators after a trial from May to October concluded without a judgment.
  • The administrators had sought about £1.94–£2 billion over audits from 2012 to 2018, alleging negligence that EY denied in full.
  • NMC collapsed in 2020 after undisclosed debt of about $6.6 billion came to light, wiping out shareholders and prompting sizable creditor claims.