Saturday, December 4, 2010

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

andreychukuze.blogspot.com
billion in damages by a civilo court judge for his rolein ’s massivew accounting fraud scandal. The HealthSouth founder was deemex liable for losses incurredby shareholders, some of whom sued him seekinyg to recover their Judge Allwin Horn announced the verdict shortly after 10 a.m. Thursday. Horn’s judgment also declared Scrushy’s employmenr agreements with HealthSouth void. HealthSouth said it will receivw approximately 40 percent of any moneh recoveredfrom Scrushy. Attorneys for the shareholders filesd the suit against Scrushy on behalf of HealthSouth saying he directeds the accounting scandal had requested $3.6 billion.
Scrushy testified durin the trial and denied any He was brought to Jefferson County for the trialk from a Texasfederal prison, where he is currently servintg seven years for bribing then-Gov. Don Siegelman for a seat on a statw health carepolicy board. Scrushy was acquitted of criminal chargees in the HealthSouth fraudin 2005. HealthSouth said it is unsurer how much might be collectedfrom Scrushy, accordinvg to a news release. “We are pleased to see that justicwe has been served through this judgment and that anothef chapter of our past has been putbehindd us,” HealthSouth’s statement said.

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