Court throws Cohen's iSOFT claim out

Renai LeMay
Monday, 23 May 2011 16:04

IT Industry - Market

In late April Oceania '” a 24 percent investor in the troubled e-health giant, which is currently subject to a buyout offer by US IT services giant CSC '” revealed that a company controlled by Cohen had requested that Oceania hand over a transfer notice with respect to about 15 percent of Ocean's holding. Cohen, who has had a long history with iSOFT and its predecessor IBA Health, left the company in mid-2010 as its financial woes deepened.

At the time, Oceania added that Cohen's company RJL Investments had initiated legal action against Oceania with respect to the matter, with the action being popularly seen as an attempt by Cohen as a first step towards blocking the CSC buyout.

However, in a statement published to the ASX this morning, Oceania said the matter had been thrown out of court last Friday 20 May. 'The Supreme Court found that the propositions of RJL in relation to the pre-emption deed were without foundation and the court dismissed RJL's proceedings with costs,' wrote Oceania. 'The court found that the CSC proposal does not activate the provisions of the pre-emption deed.'

Cohen declined to comment on the matter this morning.

Oceania noted that its position regarding the CSC buyout remained the same '” in essence, Oceania supported the US company's acquisition proposal, subject to there being no other proposal put forward before iSOFT shareholders could vote on the matter, and an independent expect concluding that the buyout was in the best interests of shareholders.