HealthSouth Holder Suits to Proceed

HealthSouth Corp. must face investors’ lawsuits claiming that executives used inside information to sell $106.7 million of the hospital company’s shares, a judge ruled.

Delaware Chancery Court Judge Leo Strine rejected the company’s bid to put the suits on hold while a special committee investigates stock sales by Chief Executive Richard Scrushy and other board members.

The judge questioned the impartiality of the panel, whose head cleared Scrushy of wrongdoing, saying it has a “troubling” composition.

HealthSouth shares fell 4 cents to $4.13 on the NYSE.