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Ernst & Young pays investors in HealthSouth fraud

By: Associated Press Email
By: Associated Press Email
healthsouth 200x120

healthsouth 200x120

BIRMINGHAM, Ala. (AP) - Ernst & Young LLP has agreed to pay $109
million to HealthSouth Corp. shareholders who sued the firm for
failing to detect an accounting fraud involving more than a dozen
executives.

According to papers filed in Birmingham federal court this week,
the proposed settlement would create a fund for investors. The New
York-based firm did not admit to any wrongdoing.

Rob Riley, a lawyer for the plaintiffs, said the deal is a good
one for investors who thought they would never see any return of
their investment.

U.S. District Judge Karon Bowdre scheduled a hearing Thursday on
whether to give preliminary approval.

Ernest & Young spokesman Charles Perkins said the settlement
allows the firm to resolve the litigation.

(Copyright 2009 by The Associated Press. All Rights Reserved.)


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