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The announcement yesterday by Healthcare Locums that legal proceedings filed against the firm and some former directors in the US District Court for the Southern District of New York, have been dismissed may have been rather premature. The Financial Times now writes that the lawsuits, which have been filed by various hedge fund investors, including Permian Investment Partners, persist.
The paper claims that “a person close to Permian Investment Partners said that the funds were still pursuing damages. They had withdrawn the case from a New York district court in order to file it in a state court, which they would do by the end of this week, the person said, adding that Healthcare Locums had ‘jumped the gun in a very big way’.”
The staffing firm is accused of misrepresenting its profitability and accounting practices. Yesterday Healthcare Locums said the proceedings had been dismissed “voluntarily” by the Plaintiffs who did not give prior notice or explanation as to why they did so.
Quoting from a source, the FT also writes that the staffing firm did not “believe there is any merit in Permian’s allegations, and [was] surprised to hear that they intend to pursue their claim”. A person close to the company said that it was obliged to inform the market when it learned of the withdrawal of the papers at the district court, and it had not been aware that the plaintiffs planned to persist in their claim.”
The article also suggests that the news might revive fears “about the group’s ability to stay in business, following its announcement in April that the claims could threaten its solvency.”