BIRMINGHAM, Ala. (AP) - Ernst & Young LLP has agreed to pay $109 million to HealthSouth Corp. shareholders who sued the firm for failing to detect an accounting fraud involving more than a dozen executives.
According to papers filed in Birmingham federal court this week, the proposed settlement would create a fund for investors.
The New York-based firm did not admit to any wrongdoing.
Rob Riley, a lawyer for the plaintiffs, said the deal is a good one for investors who thought they would never see any return of their investment.
U.S. District Judge Karon Bowdre scheduled a hearing Thursday on whether to give preliminary approval.
Ernest & Young spokesman Charles Perkins said the settlement allows the firm to resolve the litigation.