Fortis Healthcare stock under pressure after US-based trust Emqore files lawsuit seeking $6.5B in damages

11 Jan 2022 , 12:29 PM

Fortis Healthcare announced that a trust, Emqore Envesecure Private Capital Trust (“Emqore”) has filed a suit against 28 named defendants and 21 nonparty defendants, including the company and the promoter Northern TK Venture's holding company IHH Healthcare Berhad (“IHH”).

The suit was filed before the United States District Court, District of New Jersey, USA.

The Complaint has not yet been served on FHL under the Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters (“Hague Convention”).

As per Fortis regulatory filing, the Complaint has been filed for the alleged violation of, inter-alia, the U.S. Racketeer, Influenced and Corrupt Organizations Act, 28 U.S.C. § 1961, copyright infringement, tortious interference with contracts, etc. and has claimed damages over USD 6.5 billion against all the Defendants.

Fortis said that "based on legal advice, FHL believes that it has strong grounds in its favour for dismissal of the allegations against it in the Complaint and in view of the same, at this juncture, the Complaint is not expected to have any financial or operational implications on FHL."

"If and when the Complaint will be served on FHL in accordance with the applicable laws/Convention, FHL will take necessary legal actions for seeking dismissal of the Complaint under the relevant provisions of law," Fortis said.

At around 12.23 pm, Fortis was trading at Rs286.85 per piece down by 0.8% on Sensex.