HealthSouth Holder Suits to Proceed
HealthSouth Corp. must face investors’ lawsuits claiming that executives used inside information to sell $106.7 million of the hospital company’s shares, a judge ruled.
Delaware Chancery Court Judge Leo Strine rejected the company’s bid to put the suits on hold while a special committee investigates stock sales by Chief Executive Richard Scrushy and other board members.
The judge questioned the impartiality of the panel, whose head cleared Scrushy of wrongdoing, saying it has a “troubling” composition.
HealthSouth shares fell 4 cents to $4.13 on the NYSE.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
