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HealthSouth Achieves Victory in Highly-Publicized Lawsuits

A number of major and highly-publicized cases against HealthSouth’s former CEO, investment bank and outside auditors have been ongoing for several years. Two of these cases have resulted in outstanding results for HealthSouth. In particular, in October 2008, HealthSouth reached a settlement against its former investment bank, UBS, through which HealthSouth received $100 million in cash, in addition to the release of counterclaims and a $33 million judgment. These claims had been set for trial along with the company’s claims against its former CEO, Richard Scrushy, in the Jefferson County Circuit Court. The company’s case against Scrushy tried for two weeks in May 2009, after which the trial judge issued an opinion awarding the company over $2.8 billion in damages. The claims against the outside auditor are pending before the AAA where a panel is currently being assembled. These cases involve lawyers from various firms throughout the United States, including the New York and D.C. offices of Sullivan & Cromwell, the D.C. office of Williams & Connelly, the Chicago office of Winston & Strawn, and others. Bradley Arant is the only firm representing HealthSouth in these multi-billion dollar lawsuits. These individual cases are identified as Wade Tucker, et al., v. Richard M. Scrushy, et al. (HealthSouth’s claims against UBS Securities, LLC and Richard Scrushy and Wade Tucker and HealthSouth Corporation, Claimants v. Ernst & Young LLP, Respondent; Ernst & Young LLP, Claimant v. HealthSouth Corporation, Respondent and Counterclaimant (HealthSouth’s claims against Ernst & Young LLP).