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HealthSouth Wins Ruling Over $376M Judgment

Law360 (May 22, 2009, 12:00 AM EDT) -- A federal judge has set aside a $376 million consent judgment between General Medicine PC and a former subsidiary of HealthSouth Corp., saying the parties engaged in "fraud on the court" by failing to disclose material facts.

In an opinion issued Thursday, Judge John Corbett O'Meara of the U.S. District Court for the Eastern District of Michigan said the parties never negotiated the price of the agreement, knowing that General Medicine would not try to collect from the former HealthSouth subsidiary, Horizon/CMS Healthcare Corp., but would...
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