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Violation Tracker Individual Record

Company: HealthSouth
Current Parent Company: Encompass Health
Parent at the Time of the Penalty Announcement:  subscribe to see this data field
Penalty: $445,000,000
Year: 2006
Date: February 23, 2006
Offense Group: financial offenses
Primary Offense: accounting fraud or deficiencies
Mega-Scandal: Early 2000s Accounting Scandals
Violation Description: In a case brought by the New Mexico AG on behalf of a state pension fund and other investors, HealthSouth agreed to pay $445 million to settle allegations that it engaged in fraudulent accounting practices that caused hundreds of millions of dollars in losses to shareholders.
Level of Government: state
Action Type: agency action
Agency: New Mexico Attorney General
Civil or Criminal Case: civil
Facility State: New Mexico
HQ Country of Current Parent: USA
HQ State of Current Parent: Alabama
Ownership Structure of Current Parent: publicly traded
Major Industry of Current Parent: healthcare services
Specific Industry of Current Parent: healthcare services
Source of Data: Attorney General Madrid Announces Settlement in HealthSouth Securities Fraud US States News, February 23, 2006 (via Nexis).
Source Notes: If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.