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Judge Considers HealthSouth Settlement

By Associated Press

Birmingham, AL – A judge will now consider whether to approve a final 445 (m) million dollar settlement between HealthSouth and investors that was announced today to end class-action lawsuits stemming from a huge fraud at the health services company. Under the deal, the Birmingham-based company will pay 215 (m) million dollars in cash, stocks and warrants. Insurance companies will pay the remaining 230 (m) million. The final version of the agreement is identical to a preliminary settlement reached in February. HealthSouth stock was up four cents a share to four dollars, 94 cents in morning trading. Fifteen former HealthSouth executives pleaded guilty in what prosecutors described as a multi (b) billion dollars fraud. Jurors convicted a 16th. Fired C-E-O Richard Scrushy was acquitted in the fraud, but he was convicted in a separate government bribery scheme linked to his years at HealthSouth.

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