Karie Murphy has released a statement where she claims

Throughout the controversy surrounding what we consider to be the revitalisation work in Falkirk both Stevie Deans and myself have maintained that we have done nothing wrong, and that our union Unite has done nothing wrong. … our objective of getting ordinary members actively involved in a vibrant local party has been forgotten in the media coverage. … I have met with senior colleagues from both Unite and the Labour Party and have agreed that reconciliation and unity are paramount. It is therefore, with great sadness that I must withdraw my name from any consideration to be the Labour Party candidate for Falkirk…

She and Steve Deans have been “exonerated” by Labour and had their party membership restored. Wonder if Eric Joyce fancies another crack…

UPDATE:  Statement from the Labour Party:

The Labour Party began an internal process to examine the controversy surrounding the selection of a parliamentary candidate for Falkirk. At each step Labour’s general secretary and NEC have acted quickly to protect the interest of the party.Since Labour began its internal process key evidence has been withdrawn and further evidence provided by individuals concerned. Karie Murphy and Steve Deans, who were suspended, will now be reinstated as they have not been guilty of any wrongdoing. No organisation or individual has been found to have breached the rules as they stood at the time.The general secretary has determined that given these circumstances Labour should move to select its candidate for Falkirk West.These steps will enable Labour in Falkirk without further delay to choose a candidate and prepare for the general election.

Evidence has been withdrawn? Wonder who put the heavies on…