HealthSouth Fails In Bid To Revive E&Y Negligence Claims

Law360, New York (May 1, 2013, 3:17 PM EDT) -- An Alabama court has refused to vacate an arbitration decision dismissing HealthSouth Corp.'s claims over the alleged failure of former auditor Ernst & Young LLP to properly review the company’s financial statements, which aided a massive accounting fraud at the company, HealthSouth said Tuesday.

According to the Birmingham, Ala.-based rehabilitation facility provider, the Jefferson County Circuit Court rejected its appeal, filed in December after an American Arbitration Association decision to dismiss HealthSouth’s negligence claims against E&Y.

John Whittington, an executive vice president and general counsel for...
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