Tuesday, October 25, 2011

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

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billion in damages by a civil court judge for his rolein ’s massive accounting fraud scandal. The HealthSouthj founder was deemed liable for lossex incurredby shareholders, some of whom sued him seekingt to recover their investments. Judgre Allwin Horn announced the verdict shortlh after10 a.m. Horn’s judgment also declared Scrushy’s employmenyt agreements with HealthSouth void. HealthSouth said it will receivr approximately 40 percent of any mone recoveredfrom Scrushy. Attorneyx for the shareholders filed the suit againsyt Scrushy on behalf of HealthSouth saying he directed the accountingf scandal hadrequested $3.6 billion.
Scrushy testified during the trialk and deniedany wrongdoing. He was brought to Jefferson County for the trialp from a Texasfederal prison, wherwe he is currently serving sevejn years for bribing then-Gov. Don Siegelman for a seat on a state health carepolicy board. Scrusht was acquitted of criminal charges in the HealthSouth fraudin 2005. HealthSouth said it is unsure how much mighf be collectedfrom Scrushy, accordingh to a news “We are pleased to see that justice has been serves through this judgment and that another chapterr of our past has been put behin d us,” HealthSouth’s statement said.

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