HEALTHSOUTH UBS STOCK SETTLEMENT
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Notice of Proposed Settlement of Class Action with UBS Defendants
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Welcome to the UBS Stock Settlement website.

IMPORTANT UPDATE: January 20, 2012

The initial distribution of the Net Settlement Fund took place on January 20, 2012. This distribution is based on 80% of the available balance in the Net Settlement Fund. The initial distribution was approximately $74 million. There will also be a subsequent distribution from the remaining Net Settlement Fund to Authorized Claimants.


IMPORTANT DATES & DEADLINES
File a Proof of Claim: Postmarked no later than September 29, 2010
Request an Exclusion: Postmarked no later than July 7, 2010
File an Objection: Received on or before July 7, 2010
Settlement Hearing: July 22, 2010 at 10:00 a.m. in Northern
District of Alabama, Southern Division,
Hugo L. Black United States Courthouse
Initial Distribution of the Net Settlement fund: January 20, 2012

The following is a summary of information which is presented in more detail in the Notice of Proposed Settlement of Class Action with UBS Defendants, which you can access by clicking on the box with that name to the left. Since this is just a summary, you should see the full Notice for additional details.

Please read this information carefully. If you are a UBS Stockholder Class Member (as defined below), your rights will be affected by these proceedings and you may be entitled to receive benefits under a proposed $117,000,000 class action settlement.

ALL PERSONS AND ENTITIES WHO PURCHASED OR OTHERWISE ACQUIRED THE STOCK OR OPTIONS OF HEALTHSOUTH CORPORATION BETWEEN SEPTEMBER 20, 2000 AND MARCH 18, 2003, INCLUSIVE, AND WERE DAMAGED THEREBY.

Securities Brokers and other Nominees: Please see instructions on page 11 of the Notice.

Settlement Hearing

The court will hold a Settlement Hearing at 10:00 a.m. on July 22, 2010, at the Northern District of Alabama, Southern Division, Hugo L. Black United States Courthouse, 1729 Fifth Avenue North, Birmingham, Alabama 34203-2000 to determine:

(a) Whether the Settlement consisting of $117,000,000 in cash should be approved as fair, reasonable, and adequate and the proposed Judgment entered; and
(b) Whether the applications for attorneys’ fees and/or expenses should be approved.

The issuance of the Notice is not an expression of the court’s opinion on the merits of any claim in the Stockholder Action, and the court still has to decide whether to approve the Settlement. If the court approves the Settlement, payment will be made after all appeals, if any, are resolved and after the completion of all claims processing. Please be patient.

What is this case about?

The Complaint alleges, among other things, that during the relevant period, the UBS Defendants made false and misleading statements and omissions, and engaged in deceptive conduct regarding HealthSouth.

The UBS Defendants expressly have denied and continue to deny all charges of wrongdoing or liability against them arising out of any of the conduct, statements, acts or omissions alleged, or that could have been alleged, in the Stockholder Action.

Terms of the Settlement

UBS has paid, or caused to be paid, cash in the amount of $117,000,000 into an escrow account, which will earn interest for the benefit of the UBS Stockholder Class, pursuant to the terms of the Stipulation. In exchange for such payment, the Released Claims will be released, discharged and dismissed with prejudice as against each of the Released Persons. The Settlement does not release any claims of the UBS Stockholder Class against the Non-Settling Defendant or any claims of the Bondholder Class. The Settlement also does not change or modify any of the terms of the HealthSouth Settlement or the E&Y Settlement.

A portion of the Settlement Fund will be used for certain administrative expenses, including the costs of printing and mailing the Notice, the cost of publishing newspaper notices, payment of any taxes assessed against the Settlement Fund and costs associated with the processing of claims submitted. In addition, as explained herein, a portion of the Settlement Fund may be awarded by the court to reimburse Stockholder Lead Plaintiffs for their costs and expenses and to award counsel for the Stockholder Lead Plaintiffs attorneys’ fees and expenses. The balance of the Settlement (the “Net Settlement Fund”) will be distributed to Authorized Claimants according to the Plan of Allocation previously approved by the court in connection with the E&Y Settlement which can be accessed by clicking on the box with that name to the left on the top of this page.

The Rights of the Class Members

If you are a UBS Stockholder Class Member, you have the following options:

  • FILE A PROOF OF CLAIM – If you have NOT previously submitted a Proof of Claim in connection with the HealthSouth Settlement or the E&Y Settlement, you may file a Proof of Claim. If you submit (or have already submitted) a Proof of Claim, you will share in the proceeds of the proposed settlement if your claim is valid and if the proposed settlement is finally approved by the court. In addition, you will be bound by the Judgment and release as described in the Notice. All claim submissions must be postmarked no later than September 29, 2010.

  • EXCLUDE YOURSELF FROM THE CLASS – If you DO NOT wish to be included in the UBS Stockholder Class and you DO NOT wish to participate in the proposed Settlement described in the Notice, you must request to be excluded. You must request exclusion from this Settlement even if you previously excluded yourself from the HealthSouth Settlement and/or the E&Y Settlement. To do so, you must submit a written request for exclusion that must be postmarked no later than July 7, 2010.
You must set forth:
ü your name;
ü address;
ü telephone number;
ü

the number and type of HealthSouth stock or options purchased or acquired and the number sold during the Stockholder Class Period against UBS and the dates and prices of such purchase(s), acquisition(s), and/or sale(s); and

ü that you wish to be excluded from the UBS Stockholder Class.
  • The exclusion request must be addressed as follows:
HealthSouth UBS Stock Settlement
c/o Rust Consulting, Inc.
P.O. Box 2330
Faribault, MN 55021-9030
  • NO REQUEST FOR EXCLUSION WILL BE CONSIDERED VALID UNLESS ALL OF THE INFORMATION DESCRIBED ABOVE IS INCLUDED IN ANY SUCH REQUEST.
If you timely and validly request exclusion from the UBS Stockholder Class:
ü you will be excluded from that class;
ü you will not share in the proceeds of the Settlement;
ü you will not be bound by any judgment entered pursuant to the Settlement; and
ü

you will not be precluded, by reason of your decision to request exclusion from the UBS Stockholder Class, from otherwise prosecuting an individual claim, if timely, against the UBS Defendants based on the matters complained of in the Stockholder Action.

  • If you do not request in writing to be excluded from the UBS Stockholder Class as set forth above, you will be bound by any and all determinations or judgments in the Stockholder Action in connection with the Settlement approved by the court, whether favorable or unfavorable, you will not be able to bring, or continue to pursue, an individual claim against the UBS Defendants based on the matters complained of in the Stockholder Action, and you shall be deemed to have, and by operation of the Judgment shall have fully released all of the Released Claims against the Released Persons, whether or not you submit a valid Proof of Claim.
  • OBJECT – If you are a member of the UBS Stockholder Class (and you have not excluded yourself), and you disagree with some aspect of the proposed Settlement, you must send a written statement of objection to Stockholder Plaintiffs’ Lead Counsel, counsel for UBS, and the court to be received on or before July 7, 2010.
The statement of objection must include:
ü your name,
ü address,
ü telephone number,
ü your signature,
ü a statement of the reasons for objection,
ü

the objecting Persons’ membership in the UBS Stockholder Class, including the amount of HealthSouth stock or options purchased, acquired and sold during the Stockholder Class Period against UBS and held at the end of the class period, and

ü if objecting party intends on presenting evidence at the Settlement Hearing, the identity of any witnesses they may call to testify and any exhibits they intend to introduce into evidence at the Settlement Hearing.

LEAD COUNSEL FOR STOCKHOLDER
LEAD PLAINTIFFS AND UBS
STOCKHOLDER CLASS

Robbins Geller Rudman & Dowd LLP
Joy Ann Bull
655 West Broadway, Suite 1900
San Diego, CA 92101

Labaton Sucharow LLP
Thomas A. Dubbs
James W. Johnson
140 Broadway
New York, NY 10005
COURT
Clerk of the Court
United States District Court
Northern District of Alabama
Southern Division
Hugo L. Black United States Courthouse
1729 Fifth Avenue North
Birmingham, AL 34203-2000

COUNSEL FOR UBS DEFENDANTS
Sullivan & Cromwell LLP
Robert J. Giuffra, Jr.
125 Broad Street
New York, NY 10004-2498

  • DO NOTHING – If you choose this option, you will not share in the proceeds of the Settlement, but you will be bound by any judgment entered by the court in connection with the Settlement, and you shall be deemed to have, and by operation of the Judgment shall have, fully released all of the Released Claims against the Released Persons.

  • ENTER AN APPEARANCE- If you are a UBS Stockholder Class Member, you may, but are not required to, enter an appearance through counsel of your own choosing at your own expense. If you do not do so, you will be represented by Stockholder Plaintiffs’ Lead Counsel: Robbins Geller Rudman & Dowd LLP, Patrick J. Coughlin, Joy Ann Bull, 655 West Broadway, Suite 1900, San Diego, CA 92101 and Labaton Sucharow LLP, Thomas A. Dubbs, James W. Johnson, 140 Broadway, New York, NY 10005. You will not be charged personally for the services of Stockholder Plaintiffs’ Lead Counsel.

Further Information

Further information regarding the litigation, the Notice and how to file your claim may be obtained by contacting the Claims Administrator or reading through the Notice and Proof of Claim links at the left. You may also contact Stockholder Plaintiffs’ Lead Counsel.



IMPORTANT: THIS SITE IS NOT OPERATED BY UBS; THIS SETTLEMENT IS SUPERVISED BY LEAD COUNSEL FOR STOCKHOLDER LEAD PLAINTIFFS AND UBS STOCKHOLDER CLASS. THE CLAIMS ADMINISTRATOR HANDLES ALL ASPECTS OF CLAIM PROCESSING. THIS IS THE AUTHORIZED WEBSITE FOR THIS SETTTLEMENT. PLEASE DO NOT RELY UPON OTHER SITES THAT SET OUT DIFFERENT AND UNAUTHORIZED INFORMATION.