How will the payments in the settlement funds be allocated?
Counsel for the Stockholder and Bondholder Classes in the class actions have proposed a Plan of Allocation that must be approved by the Court. That Plan provides that a portion of the Settlement Fund (less Court-awarded attorneys’ fees and costs) will be allocated to the Bondholder Class by multiplying the fund by a percentage equal to: (a) the total dollar value of all eligible Bondholder Class claims divided by the total dollar value of all eligible Bondholder and Stockholder Class claims, plus (b) 500 basis points. The remainder will be allocated to the Stockholder Class, of which (a) $4.45 million will be allocated to claims related solely to claims relating to HealthSouth options, (b) $22.5 million will be allocated solely to claims for the acquisition of HealthSouth stock and/or options in HealthSouth’s mergers with Horizon/CMS, The Company Doctor, or National Surgery Centers (the “merger subclasses”), and (c) the balance will be allocated pro-rata among all claimants who purchas
