{"id":681,"date":"2010-04-27T09:49:37","date_gmt":"2010-04-27T09:49:37","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2010\/04\/ubs_agrees_to_settle_healthsou_1"},"modified":"2022-09-19T08:56:20","modified_gmt":"2022-09-19T13:56:20","slug":"ubs-agrees-to-settle-healthsou-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/ubs-agrees-to-settle-healthsou-1\/","title":{"rendered":"UBS Agrees to Settle HealthSouth Corp Accounting Fraud Litigation for $217 M"},"content":{"rendered":"

\t\t\t\tUBS AG will pay $217 million to settle an accounting fraud lawsuit<\/a> filed by HealthSouth Corp. bondholders and shareholders. Under the settlements, bondholders will receive $100 million and shareholders will get $117 million. UBS is HealthSouth’s investment bank. Meantime, Ernst & Young LLP, the. health-care services provider’s accounting firm, had settled with shareholders for $109 million and will now settle with bondholders for $33.5 million. <\/p>\n

The settlements are a result of litigation filed over a $2.7 billion fraud at HealthSouth. The accounting scheme<\/a> occurred between 1996 and 2002. After the fraud was discovered in March 2003, nearly $6 billion in market value was lost when the company’s share price dropped. 15 executives pleaded guilty over their involvement in the scam.<\/p>\n

By agreeing to settle, UBS & Earnst & Young are not admitting to or denying wrongdoing. UBS maintains that HealthSouth lied to UBS bankers numerous times. In 2008, UBS consented to pay $100 million to HealthSouth over claims the investment bank failed to discover the fraud. <\/p>\n

Shareholders also settled the accounting fraud with HealthSouth in 2006 for $355 million and received another $20 million from UBS in an Alabama court case. Meantime, bondholders received $90 million in their settlement with HealthSouth and $5 million from UBS in state court case. Bondholders and shareholders will also receive compensation from a $2.88 billion judgment against Richard Scrushy. HealthSouth’s founder was acquitted of criminal charges related to the fraud but in 2006 was convicted over a different bribery case. <\/p>\n

Related Web Resources:<\/strong>
\nUBS to Pay $217 Million to Settle HealthSouth Case<\/a>, BusinessWeek, April 23, 2010
\nUBS, Ernst Settle HealthSouth Cases for $250.5 Million, ABC News, April 24, 2010 Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

UBS AG will pay $217 million to settle an accounting fraud lawsuit filed by HealthSouth Corp. bondholders and shareholders. Under the settlements, bondholders will receive $100 million and shareholders will get $117 million. UBS is HealthSouth’s investment bank. 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