KUALA LUMPUR (Sept 9): A US court on Wednesday (Sept 7) granted IHH Healthcare Bhd’s request to dismiss US-based fund Emqore Envesecure Private Capital Trust’s amended complaint for a suit which involves damages in excess of US$6.5 billion (RM29.24 billion).
However, the matter may not be done and dusted as the US Federal District Court for the District of New Jersey attached the following conditions to the order:
“Defendants consent to the jurisdiction of Indian courts and agree to accept service of process in India in any civil action timely filed by Emqore on their claims in this matter;
“Defendants consent to waive any statute of limitations defences that would not have applied as of the date of filing this action,” IHH Healthcare's Bursa Malaysia filing on Friday (Sept 9) read, saying that the matter may be reopened if filed in the Indian courts and that IHH Healthcare and the other defendants are to waive any arguments that the appropriate time for Emqore to initiate legal proceedings has lapsed.
IHH Healthcare said it has been advised by its counsel that Emqore has the right to appeal against the order, provided that a notice of appeal is filed within 30 days of the order.
The group noted that it is still in the midst of seeking legal advice in respect of the order and in the event of an appeal by Emqore.
“IHH Healthcare will make a further announcement as and when there are any material developments on the above matter,” it added.
On June 16, 2020, Emqore filed a suit against IHH Healthcare and others pertaining to allegations in connection with the issuance of Fortis Healthcare Ltd shares to IHH Healthcare’s subsidiary in 2018.
“Emqore broadly alleges that it has purportedly suffered losses as the defendants had allegedly conspired to frustrate a proposed share acquisition transaction between Fortis and Emqore’s supposed predecessors.
“IHH Healthcare was served on July 26, 2021, with Emqore’s original complaint with Emqore’s motion to amend its original complaint,” it said.
Pursuant to the amended complaint, Emqore is seeking, among others, damages in excess of US$6.5 billion comprising compensatory damages plus treble damages and attorneys’ fees pursuant to the US Racketeer, Influenced and Corrupt Organizations Act.
IHH Healthcare's motion to dismiss Emqore’s amended complaint was argued on three principal grounds, namely: lack of personal jurisdiction (the court's lack of power over the defendants), forum non conveniens (there is another court or forum more appropriate to hear the case), and failure to state a claim for relief.
Shares in IHH Healthcare Bhd finished five sen or 0.8% lower at RM6.17, giving the group a market capitalisation of RM54.33 billion.