HealthSouth Pays $445M To Settle Derivative Suit

Law360, New York (September 27, 2006, 12:00 AM EDT) -- Embattled HealthSouth Corp. agreed Wednesday to pay a stunning $445 million to definitively end federal securities class actions and derivative lawsuits against the hospital management company and several executives.

The U.S. District Court for the Northern District of Alabama and the Circuit Court in Alabama’s Jefferson County must still approve the settlement, which cements a preliminary deal struck in February.

According to HealthSouth, the settlement will be comprised of $215 million in the company’s common stock, as well as $230 million in cash payments by some...
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