HealthSouth Derivative Litigation

Edward Haber, a partner of Shapiro Haber & Urmy LLP, was one of the Court appointed lead counsel in the consolidated derivative action brought on behalf of the HealthSouth Corporation against its former CEO, Richard Scrushy, its other former officers and directors, its auditors, investment bankers, and others. This action coordinated derivative actions brought on behalf of HealthSouth in the Delaware Chancery Court, the Federal District Court in Alabama, and the state court in Birmingham, Alabama.

The legal team, on which Shapiro Haber & Urmy LLP served as one of the lead counsel, obtained the following recoveries for HealthSouth: (i) summary judgment in the Delaware Chancery Court, for over $17 million, against Scrushy, In re HealthSouth Corp. Shareholders Litig., 845 A.2d 1096 (Del. Ch. 2003), aff'd, 847 A.2d 1121 (Del. 2004); (ii) summary judgment in the Circuit Court of Jefferson County, Alabama against Scrushy for over $47 million, see Tucker v. Scrushy, 2006 WL 37028 (Ala. Cir. Ct. Jan. 3, 2006), aff'd, 2006 WL 2458818 (Ala. Aug. 25, 2006); (iii) a settlement of the derivative claims against some of the officers and directors of HealthSouth (not including Scrushy) for $100 million, to be paid by those defendants' insurers; and (iv) a $133 million settlement of the derivative claims against HealthSouth’s former investment advisor, UBS.  The legal team obtained a $2.8 billion dollar judgment against Mr. Scrushy after a bench trial in the Circuit Court of Jefferson Court, Alabama.