Ernst & Young US and Swiss bank UBS and have agreed to
settle an investor lawsuit over the US HealthSouth fraud case for
$250.5m.

UBS will contribute $217m and Ernest & Young $33.5m, Reuters
reported.

UBS and Ernst & Young both continue to deny wrongdoing in
the estimated $2.7bn accounting fraud, which was uncovered in
2003.

Ernest & Young said the settlement means long litigations
can be avoided.

HealthSouth Corporation has already paid $445m
in settlements for lawsuits that were filed against the company and
some of its former directors.