Thursday, November 3, 2011

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

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billion in damages by a civil court judg for his rolein ’s massive accountinb fraud scandal. The HealthSouthh founder was deemed liable for losses incurrecdby shareholders, some of whom sued him seekingh to recover their investments. Judge Allwin Horn announce d the verdict shortly after10 a.m. Thursday. Horn’s judgmenrt also declared Scrushy’s employment agreements with HealthSouth void. HealthSouth said it will receiv e approximately 40 percent of any money recovered from Scrushy. Attorneys for the shareholder s filed the suit against Scrushy on behalf of HealthSouth saying he directed the accountinhg scandal hadrequested $3.6 billion.
Scrushy testifiesd during the trial and denierany wrongdoing. He was broughtt to Jefferson County for the trial from a Texasafederal prison, where he is currentlg serving seven years for bribinh then-Gov. Don Siegelman for a seat on a state healthb carepolicy board. Scrushy was acquitted of crimina l charges in the HealthSouth fraudin 2005. HealthSoutnh said it is unsurd how much might be collectedfrom Scrushy, accordingb to a news release. “We are pleased to see that justicee has been served through this judgment and that anothetr chapter of our past has been putbehind HealthSouth’s statement said.

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