Health care company HealthSouth Corp. said that it will pay $445 million to settle investor lawsuits brought in the wake of a $2.7 billion earnings overstatement that nearly destroyed the company.

HealthSouth and its liability insurers reached the agreement after months of court-ordered mediation. The proposed deal, which is subject to court approval, doesn't resolve claims against HealthSouth's former auditor Ernst & Young, former banker UBS Securities, or company founder Richard Scrushy.

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