HealthSouth Client Scored Huge Win

The firm's client, HealthSouth, scored another huge win today, this time out of the Eleventh Circuit Court of Appeals, which rejected not one but two appeals challenging the company’s 2006 settlement with the federal plaintiffs. In the first appeal, Richard Scrushy challenged the bar order that was a core component of the federal settlement, claiming that it unfairly interfered with his Indemnity Agreement with HealthSouth and deprived him of claims for advancement of attorneys fees and expenses. In the second, AIG—a very significant putative class member—claimed that it had been unfairly prevented from opting out of the federal settlement. If successful, either appeal would have cost the company huge sums and threatened the viability of the federal settlement, which was a critical milestone in the company’s recovery from the massive fraud that occurred under prior management. In strong and detailed opinions, the Eleventh Circuit rejected both appeals, a great victory for HealthSouth.