AAA Tosses HealthSouth's Ernst & Young Negligence Claims

Law360, New York (December 19, 2012, 1:41 PM EST) -- The American Arbitration Association has dismissed HealthSouth Corp.'s claims that its former auditor Ernst & Young LLP acted recklessly and failed to perform reviews of the company’s financial statements with proper care, HealthSouth said Tuesday.

The hospital operator said a AAA panel had been adjudicating its claims since July 2010 and that it recently granted Ernst & Young’s motion to dismiss based on legal grounds that HealthSouth contended “do not address the underlying merits” of its claims. These included allegations that from 1996 through 2002, Ernst...
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