EY UK Settles Claims Faulting Its Audits of Collapsed NMC Health

Ernst & Young UK said Tuesday it had settled a £2 billion ($2.7 billion) court claim from the bankruptcy administrators of NMC Health plc, who said the firm was negligent in its audits of the collapsed hospital operator.

The Big Four firm said in an emailed statement that the case had ended. The firm didn’t offer further comment or disclose the amount of the settlement.

NMC’s administrators Alvarez & Marsal had claimed EY missed a series of red flags when giving unqualified audit reports before the hospital group collapsed in 2020. The company had billions of dollars ...