Thursday, Sept. 19, 2002 | 11:13 a.m.
BIRMINGHAM, Ala. -- HealthSouth Corp., the nation's largest provider of outpatient surgery and rehabilitation services and a big player in the Las Vegas health industry, said today it is being investigated by the Securities and Exchange Commission.
The investigation comes amid disclosures that HealthSouth's earnings would be sharply lower than expected and that its founder and chairman, Richard Scrushy, sold half his stake in the company weeks before the profit warning.
The earnings announcement sent HealthSouth's stock price plummeting 44 percent on Aug. 27.
HealthSouth, which operates rehabilitation hospitals and clinics around the country, did not say exactly what the SEC was examining but said it is cooperating fully with the probe.
It also said it had named a new independent member to its board and had appointed a special litigation committee to review matters related to claims against the company.
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