NEW YORK, Sept. 13, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Northern District of Alabama, on behalf of all persons or entities who purchased or otherwise acquired securities of HealthSouth Corporation ("HealthSouth" or the "Company") (NYSE:HRC) between January 14, 2002 and August 27, 2002, both dates inclusive (the "Class Period"). HealthSouth, Richard M. Scrushy, William Owens, George Strong, and Weston L. Smith are named as defendants in the complaint.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. Belfi or Sharon Lee, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
The complaint alleges that defendants violated section 10(b) of the Securities Exchange Act of 1934 by issuing a series of materially false and misleading statements and omitting to disclose material adverse information about the Company's operations and prospects during the Class Period. Specifically, the complaint alleges that defendants misled the market concerning expectations for revenues and earnings by failing to disclose the impact on its operations of certain Medicaid reimbursement policies and, thereby, reimbursement rates to HealthSouth. Due to facts known to HealthSouth concerning the Medicaid reimbursement policies and rates, HealthSouth knew throughout the Class Period that it was in no position to meet the revenue and earnings guidance it had given to investors. Thus, those claims were knowingly or recklessly made without any reasonable basis. Meanwhile, during the Class Period, HealthSouth insiders, and in particular defendant Scrushy, sold over $74 million worth of HealthSouth stock.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel LLP at www.rabinlaw.com.
If you purchased HealthSouth securities during the Class Period described above, you may, no later than October 28, 2002, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. Contact plaintiffs' counsel Eric J. Belfi or Sharon Lee of Rabin & Peckel LLP to further discuss this action, this announcement, or your rights or interests.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.