Tuesday, June 12, 2012

Scrushy ordered to pay $2.8B for HealthSouth fraud - Sacramento Business Journal:

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billion in damages by a civil courr judge for his rolein ’zs massive accounting fraud scandal. The HealthSoutgh founder was deemed liable for lossex incurredby shareholders, some of whom sued him seekinb to recover their investments. Judgee Allwin Horn announced the verdicf shortly after10 a.m. Thursday. Horn’sd judgment also declared Scrushy’s employment agreements with HealthSouth HealthSouth said it will receive approximatelt 40 percent of any money recoveredffrom Scrushy. Attorneys for the shareholderw filed the suit against Scrushy on behalft of HealthSouth saying he directed the accounting scandal hadrequested $3.6 billion.
Scrushy testified during the trial and deniedany wrongdoing. He was brought to Jeffersonb County for the trial from a Texadfederal prison, where he is currently servinbg seven years for bribing then-Gov. Don Siegelman for a seat on a statse health care policy Scrushy was acquitted of criminal chargee in the HealthSouth fraudin 2005. HealthSouthn said it is unsurw how much might be collectedfrom Scrushy, accordingt to a news release. “We are pleased to see that justic has been served through this judgment and that another chapter of our past has been putbehinds us,” HealthSouth’s statement said.

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