On Tuesday, shareholders of HealthSouth announced a $109 million settlement with Ernst & Young, the company‘s accountant. The class’ attorneys claimed the settlement was one of the top settlements ever with an accounting firm. The American Lawyer reports that the settlement comes just days before the scheduled class certification hearing in case.
Following the settlement, HealthSouth shareholders still have pending claims against UBS, which was HealthSouth’s bank. Coughlin Stoia’s Patrick Coughlin, counsel for the class, told the American Lawyer that UBS is “the most culpable” defendant because “several [HealthSouth] CFOs have testified to UBS’s actual knowledge of the fraud.”
Another putative class action against Ernst & Young is also still pending. That case was filed by the company’s bondholders, who are represented by John “Sean” Coffey of Bernstein Litowitz Berger & Grossmann.
