Ernst & Young LLP ("E&Y") has entered into a stipulation of settlement in the HealthSouth securities class action in the N.D. of Ala. The case, originally filed in June 2003, stems from allegations that the defendants materially misrepresented the company's earnings by failing to disclose the impact of certain changes in Medicare reimbursement on the company's profits.
The E&Y settlement is for $109 million. HealthSouth settled the claims against the company for $445 million back in 2006. The American Lawyer reports that the E&Y settlement comes just before a court hearing on class certification. E&Y remains a defendant in a separate class action brought by HealthSouth's bondholders.Posted by Lyle Roberts at March 26, 2009 6:41 PM | TrackBack