HealthSouth Reaches $445 Million Preliminary Settlement to Resolve Lawsuits

By Danielle Briones

Published on February 27, 2006

Attorneys are still working on the final agreement, which will have to be approved by a judge.

If finalized, HealthSouth will pay $215 million in stock and insurance companies will pay the remaining $230 million of the agreement.

According to lawsuits against the company and its founders, HealthSouth was involved in a massive fraud that bilked investors, employees, Medicare and other government health companies of billions of dollars.

After the fraud was revealed, the price of the company's stock fell from a high of $31 a share to 9 cents a share.

Since then, HealthSouth has been involved in various lawsuits.

The company reached a $325 million settlement with the U.S. government in 2004 to resolve charges that it defrauded government health programs.

In 2005, HealthSouth reached an agreement totaling $100 million with the SEC to settle accounting fraud charges.

A $25 million class action settlement was also reached last year to cover losses in employees' retirement fund.

A lawsuit against HealthSouth and founder Richard Scrushy is pending.

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Keyword Tags: criminal law, securities fraud

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1

what if I told you at the very beginning my att the dr att new a bout a five hours no one reported during the epidural and after the injection they just let me sit they I do not recall any thing the one injection turned out to be two in let's than five minuets with out my knowledge for over one year.My att at that time felt it vital to tell judge and jury that i drank a six pack of beer a day but felt to say that I had not or never did that in his own report wright in front of me.To tell you that is my dame bissness and my bissness a long.But it made me so upset that he said that to these people I never meet in my life would say that eight times one two page's told them to use there commend sense six time's on one page they are going to say this is a farvulest law suite six times.Please if you don't recall one thing what this man said a bout me after he LEFT THE COURT WHILE TOLD ME HE WOULD BE BACK I THOUGHT THE SAME DAY '''10''' AFTER DAYS HE CAME BACK AND SAID THESE THING'S IN HE'S CLOSING ARGUMENTS '''WHAT'''WOULD YOU THINK.ONE THING MORE HE SAID MY INJURY'S ARE NOT THAT SEVER..TELL THAT TO MY WIFE EIGHT YEARS AND COUNTING.AND GUY'S WHAT WOULD YOU DO.TAKE THAT NOT TO SEVER AND PUT IT.I have a very little class left lady's Sorry that's a lie.I can't say that on the internet??????????????????????? were do I go what do I do I just found most of all this least then two weeks a go and I am a man of color you may think that has nothing to do with this.Rember 9/11 unfortunately I have to say it REMEMBER THE CLOSENESS OF US ALL DON'T FORGET YOU CAN'T''''''PLEASE''''''''''

rod, about 1 year ago

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