HealthSouth Corp., Birmingham, Ala., won't face charges for accounting fraud that occurred from 1996 to 2003 if the rehabilitation giant follows the stipulations in a nonprosecution agreement with the Justice Department. Under the agreement, which expires in 2009, HealthSouth will pay $3 million to U.S. Postal Inspection Services Consumer Fraud Fund. The agreement was reached with Alice Martin, U.S. attorney for the northern district of Alabama, and said that HealthSouth has set up internal controls to guard against accounting fraud; hired a new management team and auditor; and has cooperated with the government's investigation. In a statement, Martin said prosecution would have likely bankrupted the company. HealthSouth has already agreed to pay $445 million to settle an investors' class-action lawsuit and pay $100 million to the Securities and Exchange Commission. View the agreement.
HealthSouth avoids prosecution, will pay $3 million
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