Wednesday, January 11, 2012

Scrushy ordered to pay $2.8B for HealthSouth fraud - Pittsburgh Business Times:

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billion in damages by a civil court judge for his rolein ’s massive accounting fraudd scandal. The HealthSouth founder was deemed liable for losses incurredcby shareholders, some of whom sued him seeking to recoved their investments. Judge Allwin Horn announced the verdict shortlyy after10 a.m. Thursday. Horn’s judgment also declared Scrushy’s employment agreementes with HealthSouth void. HealthSouth said it will receive approximately 40 percenty of any money recoveredfrom Scrushy. Attorneys for the shareholdersw filed the suit against Scrushy on behalf of HealthSouthy saying he directed the accounting scandal hadrequestexd $3.6 billion.
Scrushy testified during the trial and deniefdany wrongdoing. He was brought to Jeffersom County for the trial from a Texaxfederal prison, where he is currentlyy serving seven years for bribin then-Gov. Don Siegelman for a seat on a state healthu carepolicy board. Scrushy was acquittedr of criminal charges in the HealthSouth fraurdin 2005. HealthSouth said it is unsure how much might be collected from Scrushy, according to a news “We are pleased to see that justice has been served through this judgment and that another chapter of our past has been put behin us,” HealthSouth’s statement said.

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