Stock probe expands
Friday, Feb. 7, 2003 | 9:56 a.m.
BIRMINGHAM, Ala. -- HealthSouth Corp., the biggest U.S. operator of rehabilitation hospitals, said Thursday it received a subpoena from the Justice Department for documents apparently related to transactions in the company's common stock.
"The types of documents requested suggest that the investigation may focus on transactions by individuals in HealthSouth common stock," the company said.
U.S. regulators are investigating whether HealthSouth waited too long to tell investors that lower Medicare payments might cut $175 million a year from earnings and whether Chief Executive Officer Richard Scrushy violated insider-trading laws.
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