Healthcare Locums, the troubled nursing, medical and social services recruitment firm has had some good news on the legal front.
It was being sued in the US by an outfit called Permian Master Fund. That fund has now pulled out of the court case, leading to a 20% rise in Healthcare Locum's share price on Wednesday morning.
Peter Sullivan, Chairman, commented "The board welcomes this decision. The filed legal proceedings were an unwelcome distraction and the board was always of the opinion that the claims were wholly without merit."
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Healthcare Locums announced in January of 2011 that it had discovered accounting irregularities, which led to a suspension in trading in the shares until September of last year.
The irregularities amounted to the inclusion in the revenue figures of amounts which had not even been invoiced, as well as intangible asset valuations that were later found to be mistakes. Since then the entire board has been replaced.
So far in 2012 the firm's shares have gained 46% although they are still down 96% on the price before the accounting problems were detected.
BS
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