Bain said that it bought a 30.99 per cent stake in the company for $60m in May 2010 based on false financial statements that had been audited and certified by EY, according to a copy of the lawsuit seen by Reuters.
The firm said in the lawsuit, which was filed in Massachusetts, that the investment is now worthless.
It was reported in 2012 that a whistleblower made Bain aware of problems with the accounts at the company, which was at the time preparing for an IPO.
EY said that “these allegations of wrongdoing are baseless and EY will vigorously defend this matter.”
Last December Bain bought Indian company Emcure Pharmaceuticals from private equity major Blackstone.
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