A Medical Device Daily

HealthSouth (Birmingham, Alabama) reported that a proposed partial settlement has been reached in the class action against it, in re HealthSouth Corporation Securities Litigation, No. CV-03-BE-1500-S, providing benefits to those that purchased HealthSouth stocks, options, bonds, notes or other debt instruments and suffered a financial loss.

The proposed partial settlement is for the principal amount of $445 million in cash and HealthSouth common stock and warrants, plus interest on the cash portion of the settlement.

The settlement class includes all persons who purchased the stock or options of HealthSouth, including HealthSouth securities received in exchange for the stock or options of certain other companies acquired by HealthSouth between April 24, 1997, and March 18, 2003, and all those who acquired HealthSouth bonds, notes or other debt instruments during the period between March 31, 1998, and March 18, 2003.

Class members can choose to remain a member of the settlement class and participate in the proposed settlement, opt-out of the proposed settlement, or object to the proposed settlement.

A hearing will be held on Jan. 8, 2007, before Judge Karon Owen Bowdre, in Birmingham to determine if the proposed settlement is fair, reasonable and adequate.