Several separate lawsuits filed by private parties and the United States
Securities and Exchange Commission ("SEC") claim that HealthSouth Corporation
("HealthSouth") and others provided investors with false and misleading
information that artificially inflated the value of HealthSouth securities, in
violation of federal securities laws. Some of these lawsuits have been filed as
class actions against HealthSouth and other individuals, asking for money
damages on behalf of certain purchasers of HealthSouth securities.
The class action lawsuits were consolidated into two cases in the United States
District Court for the Northern District of Alabama, Southern Division. The
names of the consolidated lawsuits are In re HealthSouth Stockholder Litigation,
Master File No. CV-03-BE-1501-S and In re HealthSouth Bondholder Litigation,
Master File No. CV-03-BE-1502-S. These consolidated lawsuits are called the
Another lawsuit against HealthSouth was filed in the same Court by the United
States Securities and Exchange Commission ("SEC"). The name of that lawsuit is
Securities and Exchange Commission v HealthSouth Corporation and Richard M.
Scrushy, Civil Action No. CV-03-J-0615-S (the "SEC case").
You can read additional information at the Case
Documents link of this website.
HealthSouth negotiated two separate settlements in order to resolve these
cases: one with the SEC (the "SEC Settlement") and one with the Stockholder and
Bondholder Classes (the "class actions settlement"). To settle the SEC case,
HealthSouth paid $100 million to be distributed among certain investors. To
settle the class actions, HealthSouth negotiated a settlement which was valued
at the time it was reached at approximately $445 million (in cash and
The court-approved Plans of Allocation for the SEC case and for the private
class actions are available on this website (click
On January 11, 2007, the Court approved the class actions settlement. On
February 11, 2008, the Court approved a proposed Plan of Allocation for
distributing the class actions settlement funds and the proposal for award of
attorneys' fees. A Court hearing was held on January 29, 2009 for an appeal
that was filed by a class member objecting to certain aspects of the class
actions settlement and the Plan of Allocation. The 11th U.S. Circuit Court of
Appeals ruled on the appeal, rejecting the objections to the settlement. No
further appeals have been filed.
Claim Forms were mailed on November 1, 2007. The deadline for submitting a
claim was February 28, 2008. Late filed claims were processed through February
1, 2010. In accordance with the Court's Orders no further claims will be
accepted for any reason after February 1, 2010.
Francis E. McGovern is the Court-Appointed Distribution Agent for the SEC
HealthSouth Securities Settlement. A court appointed third-party Claims
Administrator, Rust Consulting, is processing claims, and issuing payments and
Our Call Center toll-free number is 1-888-952-9108.
Call Center hours of operation are 9:00 AM to 6:00 PM Eastern time, Monday