Swiss bank UBS and accounting firm Ernst & Young have agreed to settlements totaling $250.5 million to resolve lawsuits brought by HealthSouth Corp. bondholders and shareholders. A number of class action lawsuits consolidated in a single docket allege UBS and Ernst & Young carry some blame for the rehabilitation chain's financial fraud.
HealthSouth wins $250 million in settlement
According to documents filed in U.S. District Court in Birmingham, Ala., UBS will pay $100 million to bondholders and another $117 million to shareholders. Ernst & Young, meanwhile, will pay bondholders $35.5 million. Both companies deny any wrongdoing in the agreements, which remain subject to court approval.
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