IHH Healthcare granted motion to dismiss by US fund

A US court has granted IHH Healthcare’s motion to dismiss a suit brought against it by US fund Emqore Envesecure Private Capital, the mainboard-listed company disclosed in a Friday (Sep 9) bourse filing.

Emqore sought over US$6.5 billion in damages in a lawsuit against IHH Healthcare and other defendants. Emqore’s claims involved the issuance of shares of Fortis Healthcare to IHH’s subsidiary in 2018.

The fund alleged that it suffered losses as the defendants had allegedly conspired to frustrate a proposed share acquisition transaction between Fortis Healthcare and Emqore’s supposed predecessors.

IHH Healthcare in January filed a motion to dismiss the suit for lack of personal jurisdiction and failure to state a claim under the Federal Rules of Civil Procedure.

In Friday’s filing, the company said the court’s granting of the motion is subject to certain conditions. The parties have a right to reopen the lawsuit, upon showing good cause for it, if there is a failure to comply with 2 conditions.

The defendants must consent to the jurisdiction of Indian courts and agree to accept service of process in India in any civil action filed by Emqore on their claims in this matter. They also must consent to waive any statute of limitations defences that would not have applied as of the date of filing of the action.

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IHH said it has been advised by its US counsel that Emqore has a right to appeal against the court’s order. The company is seeking legal advice on the appropriate steps in the event of an appeal by Emqore.

The counter closed at S$1.92 on Friday, down S$0.02 or 1 per cent.