Five HealthSouth Corp. directors have agreed to resign and the company has promised to hold an annual shareholders meeting within 60 days of receiving its next audited financial statements, under a settlement with the Teachers' Retirement System of Louisiana, a pension plan that holds stock in the rehabilitation company. HealthSouth has not held a shareholders meeting in 18 months. The settlement ends the pension plan's lawsuit over the scheduling of a meeting but doesn't affect its ongoing suit against HealthSouth founder Richard Scrushy and the directors themselves, who were at the company's helm during an alleged $2.7 billion accounting fraud scandal. HealthSouth said two directors will resign Dec. 15, two more on April 15, 2004, and the last on Aug. 30, 2004. Interim Chairman Joel Gordon, interim CEO Robert May and two other directors who joined the board after HealthSouth's problems began will keep their seats. Scrushy, indicted earlier this fall on 85 counts of conspiracy, fraud and money laundering, remains a director in name only, having refused the board's requests for his resignation. -- by Julie Piotrowski
Shareholder wins HealthSouth board overhaul
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