US fund Emqore seeks US$6.5b in lawsuit against IHH over purported losses

A US fund is seeking over US$6.5 billion in damages in a lawsuit against IHH Healthcare and other defendants, the mainboard-listed company disclosed in a Wednesday (Jan 5) bourse filing.

The lawsuit involves the issuance of shares of India’s Fortis Healthcare to IHH’s subsidiary back in 2018. The fund, Emqore Envesecure Private Capital Trust, alleges that it suffered losses as the defendants had purportedly conspired to frustrate a proposed share acquisition transaction between Fortis and Emqore's supposed predecessors.

IHH had invested in India-based Fortis back in 2018, after a high-profile bidding war against domestic and international companies.

Emqore's lawsuit involves 28 named defendants and 20 non-party defendants. It is thus not possible at this juncture to estimate the liability arising from the lawsuit to IHH, the company said.

IHH believes that it has "strong grounds" for dismissal of the lawsuit, and is not expecting any financial or operational impact for now. It intends to file a motion to dismiss Emqore's amended complaint on three grounds: lack of personal jurisdiction, forum non conveniens and failure to state a claim for relief.

"IHH intends to defend vigorously against the claims," the company said.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Emqore had initially filed the lawsuit in June 2020. IHH was served in July last year with the original complaint and Emqore's motion to amend it. The motion had been pending adjudication until Dec 3, when Emqore's amended complaint was filed at the US District Court.

Shares of IHH closed at S$2.20 on Wednesday, down 0.45 per cent.