BLB&G and Lead Plaintiffs Announce Additional Settlements of $133.5 Million in HealthSouth Bondholder Litigation – Total Recoveries for Bondholders Over $230 Million
April 23, 2010BLB&G, Court-appointed Co-Lead Counsel, and its client, the Retirement System of Alabama ("RSA"), Court-appointed Lead Counsel for a class of bond purchasers of HealthSouth Corporation announced that they have reached separate class action settlements with UBS AG, UBS Warburg LLC, Benjamin D. Lorello, William C. McGahan and Howard Capek (collectively, "UBS") and with Ernst & Young LLP ("E&Y").
The total consideration to be paid in the UBS settlement is $100 million in cash and E&Y has agreed to pay $33.5 million in cash. These settlements follow an earlier settlement with HealthSouth and its former outside directors valued at approximately $90 million for the bond class. Bond purchasers will also receive approximately 5% of the recovery achieved in Alabama state court in a separate action brought on behalf of HealthSouth against UBS and Richard Scrushy. These settlements follow an earlier settlement with HealthSouth and its former outside directors valued at approximately $90 million for the bond Class. The total settlement for injured HealthSouth bond purchasers will be in excess of $230 million, which should recoup over a third of bond purchaser damages.
The claims in the litigation against HealthSouth, one of the largest healthcare providers in the country, arise from a massive scheme undertaken over the course of sixteen years to manipulate HealthSouth's financial statements by creating fictitious revenue and income, capitalizing normal operating expenses, failing to write off impaired accounts receivable and other assets, and cheating Medicare and private insurers.
Also of Interest
ISS SCAS Releases Top Securities Settlements Report: Bernstein Litowitz Leads the Field for Ninth Consecutive Year
February 11, 2019
BLB&G Again Tops SCAS All-Time List With More Top Recoveries Than Any Other Firm
Benchmark Once Again Names Seven BLB&G “Litigation Stars”
Benchmark Names Eight BLB&G Partners as Litigation Stars
BLB&G #1 in the Nation with Most Dollars Recovered - ISS Securities Class Action Services 2018 Rankings
Chambers Again Ranks BLB&G Among Nation’s Top Securities Litigation Firms
Benchmark Names Seven BLB&G “Litigation Stars”
Law360 Highlights BLB&G’s Top Ranking in Review of ISS/SCAS All-Time Top Settlements Report
June 14, 2017
Legal 500 Again Ranks BLB&G a National Tier 1 Firm for Securities and M&A Litigation
SCAS Again Ranks Bernstein Litowitz Among Top Securities Litigation Firms in the Nation With Over $2 Billion Recovered and Highest Average Recovery
April 20, 2017