Encompass Health Corp (EHC)

[sllabxam]

HealthSouth found liable for $376 mln judgment
Wed Nov 16, 2005 08:25 PM ET
BIRMINGHAM, Ala., Nov 16 (Reuters) - An Alabama judge found HealthSouth Corp. (HLSH.PK: Quote, Profile, Research) solely liable for a $376 million judgment in favor of a Michigan health care company on Wednesday.

Jefferson County Circuit Court Judge Robert S. Vance issued the ruling that made HealthSouth, once one of the largest U.S. healthcare providers, responsible alone for paying General Medicine P.C., a geriatric, health care company based in Michigan.

"The company is considering its options, including an appeal," said Andy Brimmer, a spokesman for Birmingham, Alabama-based HealthSouth.

Vance's ruling removed any liability from Meadowbrook Healthcare, another Alabama healthcare company.

The dispute arose over various asset sales.

HealthSouth was brought low after the U.S. Securities and Exchange Commission found that the company had overstated its earnings by at least $2.7 billion. Its top executives were subsequently charged with fraud. Some plead guilty and almost all have been sentenced. Its former chief executive, Richard Scrushy, was found not guilty.

Dr. Tom Prose, president of General Medicine said, "We just wonder when HealthSouth will pay."