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
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
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.)