If you purchased, exchanged or otherwise acquired bonds, notes or other debt instruments of HealthSouth Corporation beginning July 30, 1999 through and including March 18, 2003 and were damaged, your rights may be affected by a class action lawsuit.
A class action settlement has been reached with defendants Ernst & Young LLP (“E&Y”), UBS AG, UBS Warburg, LLC, Howard Capek, Benjamin D. Lorello and William C. McGahan (the “UBS Defendants”) (collectively the “settling defendants”) in consolidated class action lawsuits pending against HealthSouth’s founder and former Chief Executive Officer, Richard M. Scrushy, HealthSouth’s former outside accountants, Ernst & Young LLP; and the UBS Defendants in the United States District Court for the Northern District of Alabama, Southern Division (styled In re Healthsouth Corporation Securities Litigation, Master File Case No. CV-03-BE-1500-S; In re HealthSouth Corporation Bondholder Litigation, Consolidated Case No. CV-03-BE-1502-S), alleging that defendants violated §§10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder by the SEC, and §§11 and 15 of the Securities Act of 1933, according to the class action settlement notice.
The HealthSouth Ernst & Young E&Y and UBS Bondholder class action lawsuit complaint reportedly alleges that during the relevant period, at the direction of senior HealthSouth management, Defendants implemented a scheme to falsify HealthSouth’s financial statements in order to meet or exceed Wall Street expectations and to issue HealthSouth Bonds to finance that alleged fraudulent scheme. Ernst & Young E&Y is alleged to have issued false and misleading audit reports on HealthSouth’s financial statements during the Ernst & Young E&Y Class Period. The UBS Defendants are alleged to have fraudulently disseminated false and misleading information regarding HealthSouth to the Bondholder Class and to the market generally through a series of Rule 144A bond offerings between 2000 and 2002.
The Bondholder Class reportedly includes all persons and entities who, between March 30, 2000 and March 18, 2003, inclusive, purchased, exchanged or otherwise acquired the bonds, notes or other debt instruments of HealthSouth and were damaged thereby and who are not otherwise excluded.
The Ernst & Young E&Y Bondholder Class includes only those Bondholder Class Members who purchased HealthSouth bonds, notes or other debt instruments (“HealthSouth Bonds” or “Bonds”) beginning March 30, 2000 through and including March 18, 2003 (the “E&Y Class Period”) and who are not otherwise excluded. The UBS Bondholder Class includes only those Bondholder Class Members who purchased HealthSouth Bonds beginning September 20, 2000 through and including March 18, 2003 (the “UBS Class Period”) and who are not otherwise excluded from the class.
The Ernst & Young E&Y Class Action Settlement reportedly provides that Ernst & Young E&Y has paid, or caused to be paid, cash in the amount of $33,500,000 into an escrow account, which is earning interest for the benefit of the Ernst & Young E&Y Bondholder Class.
The UBS Class Action Settlement reportedly provides that UBS has paid, or caused to be paid, cash in the amount of $100,000,000 into an escrow account, which is earning interest for the benefit of the UBS Bondholder Class. Both settlements are subject to court approval.
Before any distribution is made to E&Y and/or UBS Bondholder Class Members who timely submit valid proof of claims, court-awarded expenses, such as attorneys’ fees and litigation expenses (which may include the costs and expenses of the Bondholder Plaintiffs), the cost of sending class Notice, and the costs of the administration and distribution of the Settlement Funds will be deducted from the Settlement Funds.
The following HealthSouth bonds, notes or debt instruments (“HealthSouth Bonds”) are reportedly eligible securities for purposes of the class action settlements:
a) 3.25% Convertible Debentures due 4/1/2003
b) 6.875% Senior Notes due 6/15/2005
c) 7.0% Senior Notes due 6/15/2008
d) 10.75% Senior Subordinated Notes due 10/1/2008
e) 8.5% Senior Notes due 2/1/2008
f) 8.375% Senior Notes due 10/1/2011
g) 7.375% Senior Notes due 10/1/2006
h) 7.625% Senior Notes due 6/1/2012
For more information on the HealthSouth Ernst & Young E&Y and UBS Bondholder class action lawsuit settlement and potential settlement benefits, call the Claims Administrator at 1-877-788-4959, send an email to info@HealthSouthBondholderActionSettlements-EY-UBS.com or visit the HealthSouth E&Y/UBS Bondholder Settlements website:
www.healthsouthbondholderactionsettlements-ey-ubs.com
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