In Re HealthSouth Corporation Securities Litigation 03-CV...

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FILED 2007 Oct-03 PM 07:15 U.S. DISTRICT COURT N.D. OF ALABAMA UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION In re HEALTHSOUTH ) Consolidated Case No. CORPORATION SECURITIES ) CV-03-BE-1500-S LITIGATION ) ) CLASS ACTION ) This Document Relates To: ) MOTION FOR CLASS CERTIFICATION ) In re HealthSouth Corporation ) Stockholder Litigation, Consolidated ) Case No. CV-03-BE-1501-S ) )

Transcript of In Re HealthSouth Corporation Securities Litigation 03-CV...

Page 1: In Re HealthSouth Corporation Securities Litigation 03-CV ...securities.stanford.edu/filings-documents/1008/HRC... · Rosalyn Ross, Trustees of the Franklin A. Ross and Rosalyn J.

FILED2007 Oct-03 PM 07:15

U.S. DISTRICT COURTN.D. OF ALABAMA

UNITED STATES DISTRICT COURTNORTHERN DISTRICT OF ALABAMA

SOUTHERN DIVISION

In re HEALTHSOUTH ) Consolidated Case No.CORPORATION SECURITIES ) CV-03-BE-1500-SLITIGATION ) ) CLASS ACTION

)This Document Relates To: )

MOTION FOR CLASSCERTIFICATION

)In re HealthSouth Corporation )Stockholder Litigation, Consolidated )Case No. CV-03-BE-1501-S )

)

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Plaintiffs Central States, Southeast and Southwest Area’s Pension Fund

(“Central States”), New Mexico State Investment Council and the Educational

Retirement Board of New Mexico (“New Mexico”), the State of Michigan Retirement

Systems (“Michigan”), Julius McQueen, Marsha Kouba, David Dubrow (NSC

Merger), Donald Angle, Jack Kennedy, Dale Willetts (TCD Merger), Franklin and

Rosalyn Ross, Trustees of the Franklin A. Ross and Rosalyn J. Ross Revocable Living

Trust (Horizon Merger), respectfully move the Court as follows:

1. To certify a plaintiff class consisting of all persons who, between April

24, 1997 and March 18, 2003 (the “Stockholder Class Period”), purchased or

otherwise acquired the stock or options of HealthSouth Corporation (“HRC,”

“HealthSouth” or the “Company”), and were damaged thereby (the “Stockholder

Class”). Included in the Stockholder Class are persons who acquired HealthSouth

securities in exchange for the stock or options of the National Surgery Centers, Inc.

(“NSC”), Horizon/CMS Healthcare Corporation (“Horizon”) and The Company

Doctor (“TCD”) mergers (the “Merger Subclasses”). Excluded from the Stockholder

Class and Merger Subclasses are current and former defendants, members of the

immediate family of any current or former defendants, the directors, officers,

subsidiaries and affiliates of HealthSouth, any person, firm, trust, corporation, officer,

director or other individual or entity in which any current or former defendant has a

controlling interest, and the legal representatives, affiliates, heirs, successors-in-

interest, or assigns of any such excluded party.

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2. To appoint Central States, New Mexico, Michigan and Julius McQueen

class representatives on behalf of the Stockholder Class.

3. To appoint Merger Subclass Plaintiffs Marsha Kouba, David Dubrow,

Donald Angle, Jack Kennedy, Dale Willetts, Franklin and Rosalyn Ross, Trustees of

the Franklin A. Ross and Rosalyn J. Ross Revocable Living Trust class

representatives on behalf of the Merger Subclasses.

4. To appoint Co-Lead Counsel Coughlin Stoia Geller Rudman & Robbins

LLP and Labaton Sucharow LLP; Co-Liaison Counsel Whatley, Drake & Kallas LLC

and Riley Jackson, P.C. Class Counsel.

5. To appoint Schatz, Nobel & Izard P.C. and Ragsdale LLC as separate

counsel for the Merger Subclasses.

In support of this Motion, the Stockholder Plaintiffs file the attached

Memorandum of Points and Authority and related exhibits.

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WHEREFORE, the Stockholder Plaintiffs respectfully request that their Motion

for Class Certification be granted.

DATED: October 3, 2007 Respectfully submitted,

COUGHLIN STOIA GELLERRUDMAN & ROBBINS LLP

PATRICK J. COUGHLINJONAH H. GOLDSTEINJOHN J. RICEJAMES A. CAPUTODEBRA J. WYMANRYAN A. LLORENSJENNIFER Y. LAINATHAN R. LINDELL

s/ Patrick J. Coughlin PATRICK J. COUGHLIN

655 West Broadway, Suite 1900San Diego, CA 92101Telephone: 619/231-1058619/231-7423 (fax)

LABATON SUCHAROW LLPTHOMAS A. DUBBSJAMES W. JOHNSONJOSEPH A. FONTIMICHAEL H. ROGERSKELSO L. ANDERSON140 Broadway, 34th FloorNew York, NY 10005Telephone: 212/907-0700212/818-0477 (fax)

Co-Lead Counsel for Co-Lead Plaintiffs

WHATLEY, DRAKE & KALLAS, LLCJOE R. WHATLEY, JR.RUSSELL JACKSON DRAKEG. DOUGLAS JONESOTHNI J. LATHRAM2001 Park Place North Suite 1000Birmingham, AL 35263Telephone: 205/328-9576205/328-9669 (fax)

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RILEY & JACKSON, P.C.ROBERT R. RILEY, JR.1744 Oxmoor RoadBirmingham, AL 35209Telephone: 205/879-5000205/879-5901 (fax)

Co-Liaison Counsel for Co-Lead Plaintiffs

O’DONOGHUE & O’DONOGHUE LLPLOUIS P. MALONECHARLES W. GILLIGAN4748 Wisconsin Avenue, N.W.Washington, DC 20016Telephone: 202/362-0041202/362-2640 (fax)

CICCARELLO DEL GIUDICE &LAFON

MICHAEL J. DEL GIUDICE1219 Virginia Street, East, Suite 100Charleston, WV 25301Telephone: 304/343-4440304/343-4464 (fax)

Additional Counsel for PlaintiffsSCHATZ NOBEL IZARD, P.C.ANDREW M. SCHATZJEFFREY S. NOBELSETH R. KLEIN

s/ Seth R. Klein SETH R. KLEIN

One Corporate Center20 Church Street, Suite 1700Hartford, CT 06103Telephone: 860/493-6292860/493-6290 (fax)RAGSDALE LLCClay Ragsdale2100 Third Avenue North, Suite 820Birmingham, AL 35203Telephone: 205/251-4775205/251-4777 (fax)Additional Counsel for Merger Subclasses

S:\CasesSD\Healthsouth02\MOT00046063_class cert.doc

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CERTIFICATE OF SERVICE

I hereby certify that on October 3, 2007, I electronically filed the foregoing with

the Clerk of the Court using the CM/ECF system which will send notification of such

filing to the e-mail addresses denoted on the attached Electronic Mail Notice List, and

I hereby certify that I have mailed the foregoing document or paper via the United

States Postal Service to the non-CM/ECF participants indicated on the attached

Manual Notice List.

I certify under penalty of perjury under the laws of the United States of America

that the foregoing is true and correct. Executed on October 3, 2007.

s/ Patrick J. Coughlin PATRICK J. COUGHLIN

COUGHLIN STOIA GELLERRUDMAN & ROBBINS LLP

655 West Broadway, Suite 1900San Diego, CA 92101-3301Telephone: 619/231-1058619/231-7423 (fax)E-mail: [email protected]

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CM/ECF - U.S. District Court Northern District of Alabama Page 1 of 10

Mailing Information for a Case 2:03-cv-01500-KOB-TMP

Electronic Mail Notice List

The following are those who are currently on the list to receive e-mail notices for this case.

• R Martin [email protected]

• Richard F [email protected]

• Kelso L [email protected]

• Robert J [email protected]

• William P [email protected]

• W Michael [email protected]

• Patrick J [email protected]

• Peter Q [email protected]

• Richard [email protected]

• Edward J [email protected]

• Max W [email protected]

• Stanley D [email protected]

• Jeffrey R [email protected]

• Carmine D [email protected]

• William C Bomar

https://ecf.alnd.uscourts.gov/cgi-bin/MailList.pl?830438985587064-L_390_0-1 10/3/2007

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CM/ECF - U.S. District Court Northern District of Alabama Page 2 of 10

[email protected]

• Bruce R [email protected]

• Charles F [email protected]

• Vincent [email protected]

• Scott S [email protected]

• Carl S [email protected]

• Hope T [email protected]

• James A [email protected]

• Michael J [email protected]

• John P [email protected]

• Betsy P [email protected]

• Bryan E [email protected]

• J Erik [email protected]

• Julia B [email protected]

• N Lee [email protected]

• Patrick C [email protected]

• Patrick J [email protected]

https://ecf.alnd.uscourts.gov/cgi-bin/MailList.pl?830438985587064-L_390_0-1 10/3/2007

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CM/ECF - U.S. District Court Northern District of Alabama Page 3 of 10

• John T Crowder , [email protected]

• Robert T Cunningham , [email protected]

• Stephen D [email protected]

• Charles A [email protected]

• Inayat [email protected]

• Edward P [email protected]

• Manuel J [email protected]

• David R [email protected]

• Richard T [email protected]

• Russell Jackson [email protected]

• Wayne W [email protected]

• Thomas A [email protected]

• Robert D [email protected]

• Jay M [email protected]

• Steven M [email protected]

• Joseph A [email protected]

• H L Ferguson , [email protected]

https://ecf.alnd.uscourts.gov/cgi-bin/MailList.pl?830438985587064-L_390_0-1 10/3/2007

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CM/ECF - U.S. District Court Northern District of Alabama Page 4 of 10

• Thomas [email protected]

• Robert [email protected]

• Joseph A [email protected]

• Brian Thomas [email protected]

• Lauren C [email protected]

• Henry [email protected]

• Stephen J [email protected]

• Daniel M [email protected]

• Robert J [email protected]

• Paul [email protected]

• Beata [email protected]

• Jonah H [email protected]

• James L Goyer , [email protected]

• David C [email protected]

• Helen A [email protected]

• David J [email protected]

• Jeffrey M [email protected]

https://ecf.alnd.uscourts.gov/cgi-bin/MailList.pl?830438985587064-L_390_0-1 10/3/2007

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CM/ECF - U.S. District Court Northern District of Alabama Page 5 of 10

• William P Hammer , [email protected]

• Anthony C [email protected]

• J Mark [email protected]

• David R [email protected]

• Frederick G [email protected]

• James F [email protected]

• James F Hughey , [email protected]

• Susan E [email protected]

• Harriet Thomas [email protected]

• B. Keith [email protected]

• Russel N [email protected]

• James W [email protected]

• Brice Martin [email protected]

• G Douglas [email protected]

• Robin H [email protected]

• Julia M [email protected]

• Sheilah M [email protected]

https://ecf.alnd.uscourts.gov/cgi-bin/MailList.pl?830438985587064-L_390_0-1 10/3/2007

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CM/ECF - U.S. District Court Northern District of Alabama Page 6 of 10

• Francis P [email protected]

• M Kay [email protected]

• Allison R [email protected]

• Jennifer Y [email protected]

• Othni J [email protected]

• Arthur W [email protected]

• Jeffrey N [email protected]

• William S [email protected]

• Ian N [email protected]

• Nathan R [email protected]

• Ryan A [email protected]

• Don B Long , [email protected]

• Mitchell A [email protected]

• Kallie C [email protected]

• Enu [email protected]

• Alan Daniel [email protected]

• Erskine Ramsey [email protected]

https://ecf.alnd.uscourts.gov/cgi-bin/MailList.pl?830438985587064-L_390_0-1 10/3/2007

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CM/ECF - U.S. District Court Northern District of Alabama Page 7 of 10

• Lauren A [email protected]

• Debra M [email protected]

• Benjamin M [email protected]

• Leslie V [email protected]

• Kan M [email protected]

• James L O'[email protected]

• Stephen C [email protected]

• Keith F [email protected]

• James W [email protected]

• Michael J [email protected]

• Maxwell H [email protected]

• Teresa T [email protected]

• Barry A [email protected]

• M Clay Ragsdale , [email protected]

• C Lee [email protected]

• John J [email protected]

• Robert R Riley , [email protected]

https://ecf.alnd.uscourts.gov/cgi-bin/MailList.pl?830438985587064-L_390_0-1 10/3/2007

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CM/ECF - U.S. District Court Northern District of Alabama Page 8 of 10

• Michael P [email protected]

• Daniel O [email protected]

• Michael H [email protected]

• Victoria Radd [email protected]

• Nancy I [email protected]

• Ann N [email protected]

• Michael [email protected]

• Robert S [email protected]

• Andrew M [email protected]

• Jeffrey T [email protected]

• Anne Marie [email protected]

• Neil L [email protected]

• Maryanne [email protected]

• Jackson R Sharman , [email protected]

• Kenneth O [email protected]

• Henry E [email protected]

• J Callen [email protected]

https://ecf.alnd.uscourts.gov/cgi-bin/MailList.pl?830438985587064-L_390_0-1 10/3/2007

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CM/ECF - U.S. District Court Northern District of Alabama Page 9 of 10

• Beth A [email protected]

• Tammy McClendon [email protected]

• Stephen A [email protected]

• Lawrence A [email protected]

• John B Tally , [email protected]

• Amy M [email protected]

• William H [email protected]

• Dan K [email protected]

• Edward P [email protected]

• Joe R Whatley , [email protected]

• William Calvin White , [email protected]

• Laurent S [email protected]

• Kenneth Joe Wilson , [email protected]

• Thomas P [email protected]

• Nicole E [email protected]

• Debra J [email protected]

Manual Notice List

https://ecf.alnd.uscourts.gov/cgi-bin/MailList.pl?830438985587064-L_390_0-1 10/3/2007

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CM/ECF - U.S. District Court Northern District of Alabama Page 10 of 10

The following is the list of attorneys who are not on the list to receive e-mail notices for this case (whotherefore require manual noticing). You may wish to use your mouse to select and copy this list intoyour word processing program in order to create notices or labels for these recipients.

Eric GreenRESOLUTIONS LLC222 Berkeley StreetBoston, MA 02116

Merger Subclass,

Richard M. Scrushyc/o Arthur W. Leach2310 Marin DriveBirmingham, AL 35243

https://ecf.alnd.uscourts.gov/cgi-bin/MailList.pl?830438985587064-L_390_0-1 10/3/2007

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SERVICE BY MAIL In re HealthSouth Sec. Litig.

Master File No. CV-03-BE-1500-S

Served by first-class U.S. Mail:

Eric Green Suzan M. SanfordRESOLUTIONS LLC First Assistant Attorney General222 Berkeley Street Consumer Protection DivisionBoston, MA 02116 Michigan Attorney General

P.O. Box 30755Lansing, MI 48909

Andrew J. Entwistle Michael A. Cox, Attorney GeneralRobert N. Cappucci Michigan Department of Attorney GeneralJohnston F. Whitman, Jr. G. Mennen Williams Building, 7th FloorEntwistle & Cappucci LLP 525 West Ottawa Street280 Park Avenue Lansing, MI 4890926th Floor WestNew York, New York 10017-1216

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