NYSE halts trading in HealthSouth shares

The New York Stock Exchange said today it would halt trading of HealthSouth Corporation shares for a third day.

The New York Stock Exchange said today it would halt trading of HealthSouth Corporation shares for a third day.

It is doing so while considering whether the company should still be listed following the accusation by federal authorities that it engaged in "massive" accounting fraud.

Regulators on Wednesday charged HealthSouth, the United States's biggest rehabilitation hospital chain, and its chief executive, Mr Richard Scrushy, with overstating profit by $1.4 billion in an alleged fraud that led to a raid by the FBI on the company's headquarters.

Standard & Poor's credit rating agency subsequently cut the company's senior debt rating, banks froze a $1.25 billion credit facility, and the Securities and Exchange Commission froze the assets of both the company and its chief executive.

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HealthSouth's shares, which did not trade on Wednesday or yesterday, closed on Tuesday at $3.91.

The NYSE said trading on the exchange "may or may not resume as the NYSE may, at any time, suspend a security if it believes continued dealings in the security are not advisable".