Healthsouth lawsuit settled

By: Associated Press
By: Associated Press

BIRMINGHAM, Ala. (AP) - HealthSouth Corp. has announced it has finally reached an agreement with UBS AG settling litigation filed by shareholders who claimed the Swiss investment bank was aware of a $2.7 billion fraudulent accounting scheme involving more than a dozen
HealthSouth executives.

Under the terms of the settlement, HealthSouth will receive $100 million in cash and be released of all claims by UBS, including a judgment in
favor of UBS currently on appeal before the 2nd U.S. Citrcuit Court
of Appeals.

During the civil trial HealthSouth shareholders and bondholders claimed
that former HealthSouth Chief Executive Richard Scrushy, UBS and accountant Ernst & Young aided the fraud at HealthSouth from 1996 through 2002.

In a settlement announcement Thursday, HealthSouth said the settlement to UBS and does not affect the claims against Scrushy, other defendants, or Ernst & Young.

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