NEW YORK, June 2 /PRNewswire-USNewswire/ -- YOU ARE HEREBY NOTIFIED, pursuant to an Order of the United States District Court for the Northern District of Alabama, Southern Division, of the pendency of a class action litigation on behalf of all persons noted above (the "Bondholder Class"); and that (i) a proposed settlement has been reached with defendant Ernst & Young LLP ("E&Y") on behalf of those members of the Bondholder Class who purchased, exchanged or otherwise acquired HealthSouth bonds, notes or other debt instruments beginning March 30, 2000 through and including March 18, 2003 (the "E&Y Bondholder Class"), and (ii) a proposed settlement has been reached with defendants UBS AG, UBS Warburg, LLC, Howard Capek, Benjamin D. Lorello and William C. McGahan (the "UBS Defendants") on behalf of those members of the Bondholder Class who purchased, exchanged or otherwise acquired HealthSouth bonds, notes or other debt instruments beginning September 20, 2000 through and including March 18, 2003 (the "UBS Bondholder Class").
A hearing will be held on July 22, 2010, at 10:00 a.m., before the Honorable Karon Owen Bowdre, at the Hugo L. Black United States Courthouse, 1729 Fifth Avenue North, Birmingham, Alabama, for the purpose of determining: (1) whether the proposed settlement of the claims against E&Y for the principal amount of $33,500,000 in cash should be approved by the court as fair, reasonable and adequate, and whether the Final Judgment and Order of Dismissal with Prejudice as to Ernst & Young LLP should be entered by the court; (2) whether the proposed settlement of the claims against the UBS Defendants for the principal amount of $100,000,000 in cash should be approved by the court as fair, reasonable and adequate, and whether the Final Judgment and Order of Dismissal with Prejudice as to UBS Defendants should be entered by the court; (3) whether, subject to and conditioned upon both proposed settlements being approved and becoming final, a judgment should be entered dismissing the claims against the last remaining defendant in the action; and (4) whether Bond Plaintiffs' Lead Counsel's application for an award of attorneys' fees and reimbursement of litigation expenses should be granted. The court may change the date of the hearing without providing additional notice.
If you purchased, exchanged or otherwise acquired bonds, notes or other debt instruments of HealthSouth between March 30, 2000 and March 18, 2003 inclusive (the E&Y Class Period), your rights may be affected by the proposed settlement with E&Y. If you purchased, exchanged or otherwise acquired bonds, notes or other debt instruments of HealthSouth between September 20, 2000 and March 18, 2003 inclusive (the UBS Class Period), your rights may be affected by the proposed settlement with the UBS Defendants.
If you have not received a detailed Notice of (I) Pendency of Class Action; (II) Proposed Settlements with Ernst & Young LLP and the UBS Defendants; and (III) Proposed Dismissal of Claims ("Notice") you may obtain a copy by writing to the Claims Administrator at: HealthSouth Corporation Securities Litigation - E&Y/UBS Bondholder Settlement, c/o Rust Consulting, Inc., P.O. Box 2332, Faribault, MN 55021-9032, or on the internet at www.HealthSouthBondholderActionSettlements-EY-UBS.com, www.blbglaw.com or www.cunninghambounds.com. If you are an E&Y Bondholder Class Member or UBS Bondholder Class Member and previously submitted a Proof of Claim and Release form ("Claim Form") in connection with the previously announced partial settlement with HealthSouth (and related defendants), do not do so again. Your earlier claim will be considered for participation in these settlements. If you are an E&Y Bondholder Class Member or UBS Bondholder Class Member and did NOT submit a Claim Form in connection with the earlier partial settlement with HealthSouth, in order to share in the distribution of the applicable Net Settlement Fund(s) from these Settlements, you must submit a Claim Form postmarked no later than September 29, 2010 establishing that you are entitled to a recovery. If you require a Claim Form, it may be obtained from the Claims Administrator or you can download a copy from the websites noted above.
The court has entered an Order certifying the Bondholder Class (which includes the E&Y Bondholder Class and UBS Bondholder Class). If you desire to be excluded from the Bondholder Class (which means you will also be excluded from the E&Y Bondholder Class and UBS Bondholder Class), you must submit a Request for Exclusion so that it is received no later than July 7, 2010, in the manner and form explained in the Notice referred to above. All members of the Bondholder Class who do not timely and validly request exclusion will be bound by the judgments entered by the court in this action, including the judgments that may be entered pursuant to these Settlements. The Notice explains in greater detail the effect of excluding yourself from the Bondholder Class and it should be read.
Any objection to the proposed Settlements with E&Y and the UBS Defendants, which can only be made by members of the E&Y Bondholder Class or UBS Bondholder Class respectively, must be received no later than July 7, 2010, by the persons and in the manner and form set forth in the Notice.
PLEASE DO NOT CONTACT THE COURT OR THE CLERK'S OFFICE REGARDING THIS NOTICE. If you have any questions about the litigation or the proposed settlements, you may contact the Bondholder Plaintiffs' Lead Counsel at the following addresses:
BERNSTEIN LITOWITZ BERGER & GROSSMANN LLP
Salvatore J. Graziano
1285 Avenue of the Americas
New York, NY 10019
CUNNINGHAM BOUNDS, LLC
Robert T. Cunningham, Jr.
1601 Dauphin Street
Mobile, AL 36604
Lead Counsel for Bondholder Lead Plaintiff, the E&Y Bondholder Class and the UBS Bondholder Class
Dated: May 12, 2010
BY ORDER OF THE COURT
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ALABAMA,
CONTACT: Salvatore Graziano
SOURCE Bernstein Litowitz Berger & Grossmann LLP