Alvarez & Marsal, administrators of NMC Health plc, which operated hospitals in the Middle East and was listed on the FTSE 100 in London at the time of its collapse, sued Big Four giant EY for £2bn in damages related to ‘deficient audits’ for the work of its Middle East audit team and London-based partners.

With a ruling from the High Court imminent, EY has now settled the claim out of court.

This followed NMC withdrawing its claim last Thursday, informing judge Dame Clare Molder: ‘There shall be no order as to the damages claimed or as to the costs of the claim’.

Alvarez & Marsal confirmed a confidential settlement had been reached between the parties. The firm had raised litigation funding of £11m from its funder for the EY claim, detailed in the latest statement of affairs by the administrators.