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Troubled Healthcare Locums loses 20% on new US legal moves

Funds file proceedings against the company alleging it misrpresented profits and accounting practices

Healthcare Locums, the troubled nursing recruitment group, has lost more than a fifth of its remaining value after news of possible legal actions.

The company, which ran into difficulties after it discovered accounting irregularities more than a year ago and took on a hefty amount of debt to pay for an Australian business, said a group of US funds had filed proceedings in New York. The funds, Permian, Arundel Capital, Privet Capital and Flinn Investments, allege the company and former directors including Kate Bleasdale made misrepresentations during 2010 concerning its profitability and accounting practices.

Healthcare said the summons had not yet been served, and it was taking legal advice. Meanwhile its shares have fallen 0.7p to 2.7p.

This is not the only legal case arising from the company’s problems. Bleasdale went to an industrial tribunal alleging unfair dismissal. © 2012 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds