Four ex-directors of the healthcare software firm Isoft appeared in the court on Friday to face criminal charges of misleading the stock market.

iSoft’s former chairman Patrick Cryne, former CEO Timothy Whiston, and former directors John Whelan and Stephen Graham are being prosecuted by the financial watchdog FSA for conspiracy to issue misleading statements.

All the four have been granted unconditional bail by the District Judge Michael Snow and are ordered to appear before Southwark Crown Court on 5th of February. The concerned four directors are accused of altering company’s revenue recognition policy and issuing profit warning in such a way that benefited them at the cost of other investors. 

Lucrative disposal of shares by the company directors in 2004 raised questions as share prices plunged by around 90 per cent in 2005-06. 

The four can face a maximum of 7-year jail term. Court can also ask directors to compensate investors.