Shares in Aim-listed Telit Communications bounced this morning following the announcement its chief executive had stepped down after it was discovered he is a fugitive from justice.
In a statement this morning the group, which makes technology for Internet of Things devices, said Oozi Cats had resigned from the board and his employment with immediate effect, after he was accused last week of being Boston-based businessman Uzi Katz, who fled the US in 1992 after he was accused of wire fraud.
"It is a source of considerable anger to the board that the historical indictment against Oozi Cats was never disclosed to them or previous members of the board and that they have only been made aware of its existence through third parties," the company said today. It added that Yosi Fait will continue as Telit's interim chief executive.
Meanwhile, the company said it will take steps to "reinforce" the board, appointing three new non-executive directors "as soon as practicable", one of whom will become chairman.
Telit insisted it will "move on from this difficult situation", with Fait undertaking a a preliminary review of the company's activities and cost base.
It also said it will deliver on its stated strategy, and said there was no substance to speculation about its finances and ability to trade.