Funds Holding HealthSouth Bail Out

HealthSouth Corp.’s alleged accounting fraud is causing pains in mutual funds with the biggest holdings, The Wall Street Journal reports.

HealthSouth’s stock has seen a 97% plunge in share prices to about 11 cents on the Pink Sheet. Funds that have been most affected include the Fidelity Low-Priced Stock Fund, which doubled its HealthSouth holdings between July 31 and Jan. 31. HealthSouth’s delisting from the New York Stock Exchange has devalued the fund’s published stake by about $133 million.