NMC Health Plc, an operator of hospitals in the United Arab Emirates targeted by short seller Muddy Waters, said founder and co-Chairman Bavaguthu Raghuram Shetty resigned after he was excluded from board discussions for possibly misrepresenting his holdings in the company.
Shetty stepped down with immediate effect, along with Chief Investment Officer Hani Buttikhi and board member Abdulrahman Basaddiq, the company said Monday. Last week, NMC removed Shetty from board meetings on concern he may have misstated his stake.
NMC said Mark Tompkins will continue as the company’s sole chairman.
The stock has lost two-thirds of its value since mid-December when Muddy Waters alleged that NMC manipulated its balance sheet and inflated the prices of companies it acquired.
Last week GKSD Investment, an investment company backed by hospital investors, said it’s studying a possible offer for the London-listed company.
NMC has said Muddy Waters’s claims are false and the company hired former FBI Director Louis Freeh to conduct an independent review.