Healthcare Locums PLC Update on US proceedings commenced against HCL (9286J)
August 14 2012 - 2:00AM
UK Regulatory
TIDMHLO
RNS Number : 9286J
Healthcare Locums PLC
14 August 2012
Healthcare Locums plc ("HCL" or the Company")
Update on the US proceedings commenced against HCL
As reported to shareholders on 11 July 2012, following the
voluntary dismissal of the proceedings in the United States
District Court for the Southern District of New York ("the SDNY
Court"), a Summons and Complaint were again filed against the
Company and some of its former directors, this time in the Supreme
Court of the State of New York, by Permian Master Fund, LP; Permian
Investments Partners, LP; Arundel Capital LLC; Arundel Long Fund
LP; Arundel Hedge Fund LP; Privet Capital, LLC and Flinn
Investments, LLC ("the Plaintiffs"). The Summons and Complaint have
now been served on the Company.
The Plaintiffs have not given the Company any reason or
explanation for the voluntary dismissal of the proceedings in the
SDNY Court.
Whilst proceedings have been re-commenced in the Supreme Court
of the State of New York, the only connection with the US is that
the majority of the Plaintiffs are based there. Having considered
the matter very carefully with the Company's legal advisors the
Board has decided the Company will not submit to the US
jurisdiction by filing a defence. In arriving at that decision, the
Board has considered (amongst other things):
A The company is incorporated in England with its shares listed
and traded on AIM, a part of the London Stock Exchange.
B Its actions are governed by English law and the listing and
trading of its shares on the London Stock Exchange are regulated by
the rules of that exchange.
C The former directors named as defendants in the proceedings
were directors of an English company and their powers, duties,
obligations and liabilities were regulated by English law.
D The subject matter of the alleged acts relate to events in England.
E The Company does not operate in the US and has no assets in the US.
The Company has been advised by English Leading Counsel that if
the Plaintiffs continue the US proceedings and secure a default
judgment it is highly unlikely that any judgment would be
recognised or enforceable in either the UK or Australia because of
lack of jurisdiction in the US.
Accordingly, our legal advisors have today written to the
Plaintiffs' US counsel confirming that the Company does not propose
to respond to the US proceedings and informing them that, if they
wish to pursue a claim, they should do so in the proper forum,
namely, the English High Court of Justice. The Plaintiffs' US
counsel have also been informed that the Board consider the
underlying claim to be wholly without merit and that if proceedings
are commenced in the proper forum they will be strenuously
defended.
Ends
For further information please contact:
Healthcare Locums plc
Stephen Burke, Chief Executive Officer
Sue Bygrave, Chief Finance Officer
020 7451 1451
Investec Bank plc
Gary Clarence/Patrick Robb/Daniel Adams
020 7597 5970
Pelham Bell Pottinger
David Rydell/Emma Kent/Duncan Mayall/Charlotte Offredi
020 7861 3232
This information is provided by RNS
The company news service from the London Stock Exchange
END
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