HealthSouth investors to get settlement cash
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, http://www.al.com/birminghamnews