updated 10/23/2006 12:52:40 PM ET 2006-10-23T16:52:40

A final, $445 million settlement between HealthSouth Corp. and investors was announced Wednesday to end class-action lawsuits stemming from a huge fraud at the health services company.

Under the agreement, which goes to a judge for approval, the Birmingham-based company will pay $215 million in cash, stocks and warrants. Insurance companies will pay the remaining $230 million.

"This settlement represents another significant milestone in HealthSouth's recovery and is a powerful symbol of the progress we have made as a company," chief executive Jay Grinney said in a statement.

The final version of the agreement was virtually identical to a preliminary settlement reached in February.

HealthSouth stock was up 4 cents a share to $4.94 in morning trading in the over-the-counter market.

Fifteen former HealthSouth executives pleaded guilty in what prosecutors described as a $2.7 billion fraud, and jurors convicted a 16th. Fired CEO Richard Scrushy was acquitted in the fraud, but he was subsequently convicted in a separate government bribery scheme linked to his years at HealthSouth.

Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Discussion comments


Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 3.79%
$30K home equity loan FICO 4.99%
$75K home equity loan FICO 4.69%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.83%
Cash Back Cards 17.80%
Rewards Cards 17.18%
Source: Bankrate.com