HealthSouth Sued Over Stock Sale
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The founder and then-chief executive of HealthSouth sold about $25 million worth of stock--half his stake in the company--a few weeks before the rehabilitation giant warned of lower earnings and announced his resignation as chief executive, sending the shares tumbling.
HealthSouth is the nation’s biggest chain of rehabilitation hospitals, with $4.3 billion in revenue last year.
Lawsuits filed against Richard Scrushy and HealthSouth executives question the timing of the insider stock sale and allege that information was kept from shareholders, who lost about $2.7 billion in value in the initial price plunge. HealthSouth shares dipped 8 cents to $5.30 on the NYSE.
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