HealthSouth investors to get settlement cash

Tue, 07/27/2010 - 4:45am
The Associated Press

The Securities and Exchange Commission says $106 million that HealthSouth Corp. agreed to pay investors is ready for distribution to those who qualify.

The payout stems from of an SEC lawsuit in 2003. Birmingham-based hospital operator HealthSouth agreed to settle the suit in 2005 by paying $100 million to settle civil claims that it falsely inflated earnings. The money has earned interest since that time.

The money is from a fund created to compensate investors who suffered losses from owning HealthSouth stock on Sept. 30, 1998; Aug. 27, 2002, or March 19, 2003.

Those are the days on which it was determined that HealthSouth disclosed misleading information to investors, under the leadership of former Chief Executive Richard Scrushy.


Information from: The Birmingham News,


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