Lovell Stewart Halebian LLP Announces Class Action Lawsuit Against HealthSouth Corp., Officers and Directors.Business Editors/Legal Writers NEW YORK--(BUSINESS WIRE)--Sept. 24, 2002 The law firm of Lovell Stewart Halebian LLP LLP - Lower Layer Protocol ((212) 608-1900 or www.lshllp.com) filed a class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax on September 24, 2002 on behalf of all persons who purchased, converted, exchanged or otherwise acquired the common stock of HealthSouth Corp. (NYSE NYSE See: New York Stock Exchange :HRC HRC Human Rights Campaign HRC Human Rights Council (UN) HRC Human Rights Commission HRC Hard Rock Cafe HRC Hillary Rodham Clinton (democratic senator/presidential candidate; former first lady) ) between January 14, 2002 and August 26, 2002, inclusive. The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated by the SEC thereunder and seeks to recover damages. Any member of the class may move the Court to be named lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than October 28, 2002. The action, Gerstle v. HealthSouth Corp., et al., is pending in the U.S. District Court for the Northern District of Alabama, Southern Division (1729 Fifth Avenue, North Birmingham, Alabama) and has been assigned to the Hon. William M. Acker, Jr., U.S. District Judge. According to the complaint, defendants made misstatements of material facts and omitted to state material facts in their public statements and elsewhere, including failing to disclose that imminent Centers for Medicare and Medicaid Services The Centers for Medicare and Medicaid Services (CMS), previously known as the Health Care Financing Administration (HCFA), is a federal agency within the United States Department of Health and Human Services (DHHS) that administers the Medicare program and ("CMS (1) See content management system and color management system. (2) (Conversational Monitor System) Software that provides interactive communications for IBM's VM operating system. ") directives would cause HealthSouth to lose millions of dollars in revenue and earnings going forward, that HealthSouth's operations would have to be substantially reorganized because of the CMS directives, at great expense to HealthSouth, and that because of the foregoing developments, the defendants' repeated reassurances that HealthSouth's fundamentals were strong and that it would meet its earnings targets for 2002 were lacking in any reasonable basis. The complaint alleges that after defendants disclosed that HealthSouth's 2002 earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Christopher Lovell, the senior partner at Lovell Stewart Halebian, has been appointed lead counsel or co-lead counsel in numerous significant class actions, including actions involving reportedly the largest class action recoveries in history under three separate federal statutes (the Sherman Antitrust Act Sherman Antitrust Act, 1890, first measure passed by the U.S. Congress to prohibit trusts; it was named for Senator John Sherman. Prior to its enactment, various states had passed similar laws, but they were limited to intrastate businesses. , the Commodity Exchange Act, and the Investment Company Act of 1940). These record-breaking recoveries for class plaintiffs included the $1.027 billion recovery in In re: NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on Market-Makers Antitrust Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and a $145.35 million recovery in 1999 in In re: Sumitomo Copper Litigation, a class action against various parties who conspired to manipulate the worldwide copper and copper futures markets for their own profit. Investors who acquired the common stock of HealthSouth between January 14, 2002 and August 26, 2002 may contact Lovell Stewart Halebian LLP at the telephone number, address or E-mail address below for more information regarding the class action lawsuit. Investors can also visit Lovell Stewart Halebian's website at www.lshllp.com to view a copy of the complaint. Lovell Stewart Halebian LLP John Halebian Christopher J. Gray 500 Fifth Avenue New York, New York 10110 (212) 608-1900 classaction@lshllp.com |
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