Violation Tracker Individual Record

Company: 
HealthSouth
Current Parent Company: 
Encompass Health
Penalty: 
$445,000,000
Year: 
2006
Date: 
February 23, 2006
Primary Offense: 
accounting fraud or deficiencies
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 Parent: 
USA
HQ State of Parent: 
Alabama
Ownership Structure of Parent: 
publicly traded
Major Industry of Parent: 
healthcare services
Specific Industry of 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.
Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.