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Alabama Based Health South Rehabilitation Company named in National Settlement
Lansing, Michigan –
(AP) - Michigan is part of a $109 million
national settlement with Ernst & Young stemming from allegations
the New York-based firm did not detect accounting fraud involving
more than a dozen HealthSouth Corp. executives.
State Attorney General Mike Cox and Treasurer Robert Kleine
announced the settlement Monday.
Michigan officials say the settlement is one of the largest
against an outside auditor in a class-action securities fraud case.
Michigan will get an undetermined amount of the $109 million for
losses in its pension fund.
Ernst & Young was accused of overstating the financial health of
Birmingham, Ala.-based HealthSouth, a rehabilitation company.
Michigan says HealthSouth overstated its income by more than
(Copyright 2009 by The Associated Press. All Rights Reserved.)