UBS To Pay $100M To Settle HealthSouth Claims

Law360, New York (October 24, 2008, 12:00 AM EDT) -- UBS AG will pay $100 million to settle derivative claims of HealthSouth Corp. shareholders who alleged the investment bank knew about a multibillion-dollar accounting fraud at the health care services provider.

Birmingham, Ala.-based HealthSouth and shareholders who filed derivative suits on the company's behalf have reached an agreement in principle with UBS Securities LLC, UBS AG and UBS' insurance carriers to settle litigation in the Circuit Court of Jefferson County, Ala., HealthSouth said Thursday.

In addition to the cash payment, UBS will release HealthSouth of all...
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