|  | | 2008 News and Press Releases | | |
SETTLEMENT NEWS:
Healthsouth Announced On Oct. 23 That It Had Reached A $100 Million Settlement With UBS In A Case Filed By Derivate Plaintiffs In State Court In Alabama, Sullivan Represents UBS on $100 Million HealthSouth Settlement
Brian Baxter
Law.com. October 27, 2008
_________________________________________________________________________
EXCERPT: Represented by Sullivan & Cromwell, UBS faced potentially billions in compensatory and punitive damages if plaintiffs would have proven that the Swiss banking giant was aware of the $2.7 billion accounting fraud that occurred under former HealthSouth CEO Richard Scrushy. (Scrushy currently is serving an 82-month prison sentence on separate charges of bribery and obstruction of justice. Check out reporter Ben Hallman's feature story from the February 2007 edition of The American Lawyer to get the full rundown on the Scrushy saga.) "This settlement represents another milestone in HealthSouth's recovery of damages sustained by the company under prior management," said general counsel John Whittington in a statement. … The settlement announced Friday covers claims against UBS filed in Alabama's 10th Judicial Circuit, which includes Birmingham. Under the terms of the agreement, HealthSouth will be required to pay attorneys fees for the derivative plaintiffs after they are approved by the court. After deducting costs and expenses related to the state litigation, 25 percent of the remaining proceeds will be paid to plaintiffs in the federal securities litigation. HealthSouth says that whatever is left will be used to pay down the company's long-term debt. Lead counsel for the derivative plaintiffs is John Hale of Birmingham's Hare, Wynn, Newell & Newton. Skadden, Arps, Slate, Meagher & Flom has represented HealthSouth in the past, but was conflicted out of settlement negotiations with UBS. As a result, Julia Cooper and David Hymer, litigators with Birmingham's Bradley Arant Rose & White, stepped in to represent the company. (Cooper and Haley did not return requests for comment.)
|
|
|
