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Under the settlement, HealthSouth will receive $100 million in cash and arelease of all claims by UBS including the release and satisfaction of ajudgment in favor of UBS, which is currently on appeal before the U.S. Courtof Appeals for the Second Circuit. HealthSouth will be obligated to pay thereasonable fees of the derivative plaintiffs' attorneys to be approved by theCourt. After deducting all of the Company's costs and expenses in connectionwith the Tucker litigation, HealthSouth, pursuant to the previously disclosedsettlement agreements in the consolidated federal securities litigation, willpay 25 percent of the net proceeds, to plaintiffs in the federal securitieslitigation. The balance of the proceeds will be used by HealthSouth to reducelong-term debt.
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"This settlement represents another milestone in HealthSouth's recovery ofdamages sustained by the Company under prior management," said JohnWhittington, Executive Vice President, General Counsel and CorporateSecretary. "HealthSouth and the derivative plaintiffs intend to diligentlyand vigorously pursue the claims against the remaining defendants includingScrushy and Ernst & Young."
About HealthSouth
HealthSouth is the nation's largest provider of inpatient rehabilitativeservices. Operating in 26 states across the country and in Puerto Rico,HealthSouth serves more than 250,000 patients annually through its network ofinpatient rehabilitation hospitals, long-term acute care hospitals, outpatientrehabilitation satellites, and home health agencies. HealthSouth strives to bethe nation's preeminent provider of inpatient rehabilitation services and canbe found on the Web at www.healthsouth.com.
Statements contained in this press release which are not historical factsare forward-looking statements. In addition, HealthSouth, through its seniormanagement, may from time to time make forward-looking public statementsconcerning the matters described herein. All such estimates, projections, andforward-looking information speak only as of the date hereof, and HealthSouthundertakes no duty to publicly update or revise such forward-lookinginformation, whether as a result of new information, future events, orotherwise. Such forward-looking statements are necessarily estimates basedupon current information and involve a number of risks and uncertainties.HealthSouth's actual results may differ materially from the resultsanticipated in these forward-looking statements as a result of a variety offactors. While it is impossible to identify all such factors, factors whichcould cause actual results to differ materially from those estimated byHealthSouth include, but are not limited to, any adverse outcome of variouslawsuits, claims, and legal or regulatory proceedings that may be broughtagainst us or any adverse outcome relating to the settlement of the federalsecurities class action previously disclosed by us; significant changes inHealthSouth's management team; HealthSouth's ability to continue to operate inthe ordinary course and manage its relationships with its creditors, includingits lenders, bondholders, vendors and suppliers, employees, and customers;changes, delays in, or suspension of reimbursement for HealthSouth's servicesby governmental or private payors; changes in the regulation of the healthcareindustry at either or both of the federal and state levels; competitivepressures in the healthcare industry and HealthSouth's response thereto;HealthSouth's ability to obtain and retain favorable arrangements with third-party payors; HealthSouth's ability to attract and retain nurses, therapists,and other healthcare professionals in a highly competitive environment withoften severe staffing shortages; general conditions in the economy and capitalmarkets; and other factors which may be identified from time to time in theCompany's SEC filings and other public announcements, including HealthSouth'sForm 10-Q for the quarter ended June 30, 2008 and Form 10-K for the year endedDecember 31, 2007.Media Contact Andy Brimmer, 205-410-2777 Investor Relations Contact Mary Ann Arico, 205-969-6175 [email protected]
SOURCE HealthSouth Corporation
