Four ex-directors at NHS IT supplier iSoft have denied misleading the stock market about the company’s performance.
At a hearing in Southwark Crown Court, the directors denied they had falsely stated the company had signed and funded an IT contract with Irish hospitals, in time for the end of its financial year on 30 April 2005.
The company had been struggling with delays to the beleaguered £12.7 billion National Programme for IT, as well as writedowns from a large acquisition, specialist title e-Health Insider noted.
The directors – Patrick Cryne, Barnsley Football Club owner; Stephen Graham; Timothy Whiston; and John Whelan – reportedly denied claims in a brief hearing that they had supplied inaccurate financial information to investors.
They are being prosecuted under the Financial Services and Markets Act. A full trial is not set until late next year.
In 2006, iSoft informed the Financial Services Authority of irregularities in its accounts, and was forced to restate its results. Some £174 million revenues since 2003 had to be moved to future years.
In 2007, iSoft was acquired by Australian software firm IBA Health – which then took on the company’s name – in 2007. It supplies the Lorenzo patient administration system to hospital trusts under the NHS IT programme, with implementations carried out by CSC. None of the directors have any association with the iSoft business now, and CSC is not involved in the case.