HealthSouth Corp., Birmingham, Ala., will pay $100 million to settle a Securities and Exchange Commission lawsuit over alleged accounting fraud. The company did not admit to wrongdoing under the settlement, which was filed in U.S. District Court in Birmingham. HealthSouth officials could not immediately be reached for comment. In December 2004, the company signed a $325 million settlement of civil fraud charges with several federal agencies and accepted a five-year corporate integrity agreement. Under the SEC settlement, HealthSouth will pay $12.5 million by Oct. 15 and the full amount outstanding by October 2007. The SEC alleged that HealthSouth overstated earnings by $1.4 billion in a lawsuit made public in March 2003. Other estimates later put the overstatement at about $2.7 billion. HealthSouth is expected to issue restated earnings later this month for 2000 through 2003. -- by Joseph Mantone
HealthSouth to settle SEC suit for $100 million
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