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Encompass Health Corporation (NYSE:EHC) Faces Legal Scrutiny Amid Allegations

Encompass Health Corporation (NYSE:EHC) is under scrutiny as The Rosen Law Firm investigates potential securities claims on behalf of its shareholders. The investigation stems from allegations that Encompass Health may have issued misleading business information. This follows a New York Times article on July 15, 2025, which reported serious incidents of patient harm and below-average safety performance at some of its rehab hospitals. The article's publication led to a 10.3% drop in Encompass Health's stock on the same day.

The Rosen Law Firm is preparing a class action to recover investor losses, offering a contingency fee arrangement that requires no out-of-pocket fees from investors. Known for its expertise in securities class actions, the firm has a strong track record, including securing the largest ever securities class action settlement against a Chinese company. Investors who have suffered losses are encouraged to contact the firm to join the prospective class action.

Despite these challenges, UBS upgraded Encompass Health's stock to a "Buy" on October 2, 2025. At the time, the stock was priced at $124.27, and UBS raised the price target from $140 to $150. This upgrade suggests confidence in the company's future performance, despite the recent controversies.

Currently, Encompass Health's stock is priced at $123.23, reflecting a slight decrease of 0.32, or -0.259% in percentage terms. The stock has traded between $122.64 and $124.44 today. Over the past year, it has reached a high of $127.86 and a low of $87.85, indicating some volatility in its performance.

Encompass Health's market capitalization is approximately $12.41 billion, with a trading volume of 1,017,291 shares on the NYSE. This data reflects the company's significant presence in the market, despite the ongoing legal and reputational challenges it faces.

Published on: October 5, 2025