A Diagnostics & Imaging Week
Following the not guilty verdicts delivered for its founder and former CEO Richard Scrushy, aftershocks keep coming for rehabilitation chain HealthSouth (Birmingham, Alabama).
In filings with the Securities and Exchange Commission, the company reported that it has agreed to a $25 million settlement in the class-action lawsuit filed against it. The suit relates to losses in the company's employee retirement fund.
HealthSouth will pay $7 million of the settlement, with insurance carriers paying the remainder.
The settlement is part of the continued fallout from the multi-year $2.7 billion inflation of the company's financials and, when uncovered, the resultant quickly declining value of its stock.
A judge must approve the proposed agreement.
The settlement does not affect claims against former HealthSouth finance chiefs Aaron Beam, Mike Martin or Bill Owens, who all pleaded guilty in the overstatement fraud. The suit also continues against Scrushy.