Business
HealthSouth settles retirement fund suit
NEWS IN BRIEF — Posted Aug. 22, 2005
HealthSouth and its insurers have agreed to pay $25 million to settle a class-action lawsuit over losses to its employee retirement fund following an accounting scandal at the company.
In filings with the Securities and Exchange Commission, HealthSouth said it would pay $7 million and its insurers would pay $18 million to settle the litigation. Neither must admit wrongdoing.
The settlement, which must receive court approval, does not resolve claims against several former executives who were implicated in the $2.7 billion fraud at the outpatient services giant.
Meanwhile, a former HealthSouth vice president who was charged in an alleged bribery and kickback scheme involving a hospital in Saudi Arabia has been sentenced to three years of probation. Thomas Carman, who pleaded guilty to lying to the FBI during the investigation, was also ordered to pay $500.
In other HealthSouth news, the company said its controller and principal accounting officer, John T. Quille, was stepping down to pursue other opportunities. His duties were being handed over to John Workman, the chief financial officer.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2005/08/22/bibf0822.htm.