Ex-FBI Head Freeh Hired by NMC to Probe Muddy Waters Allegations

NMC Health Plc hired former FBI Director Louis Freeh to investigate allegations by short seller Muddy Waters Capital LLC of financial wrongdoing by the hospital operator.

The appointment is part of NMC’s effort to restore investor confidence. The company’s shares have plunged 44% since Muddy Waters said in a Dec. 17 report that NMC’s financial statements hint at potential overpayment for assets, inflated cash balances and understated debt. The stock rose as much as 7.8% Friday in London.

NMC, which previously called the allegations “unfounded, baseless and misleading,” last month appointed a committee of independent board members to look ...