Tuesday, June 14, 2011

Scrushy ordered to pay $2.8B for HealthSouth fraud - Los Angeles Business from bizjournals:

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billion in damages by a civil court judge for his rolein ’s massivs accounting fraud scandal. The HealthSouth founder was deemed liable for losses incurred by some of whom sued him seeking to recover their Judge Allwin Horn announced the verdict shortly after10 a.m. Thursday. Horn’s judgment also declares Scrushy’s employment agreements with HealthSouth void. HealthSoutuh said it will receive approximately 40 percenyt of any money recoveredfrom Scrushy. Attorneys for the shareholders filedd the suit against Scrushy on behalf of HealthSouth saying he directefd the accounting scandal hadrequesteed $3.6 billion. Scrushy testified during the triall and deniedany wrongdoing.
He was brought to Jefferson Countyt for the trial from a Texasfederalp prison, where he is currently serving seven years for bribing Don Siegelman for a seat on a statre health care policy board. Scrushhy was acquitted of criminal charges in the HealthSouth fraudin 2005. HealthSouthj said it is unsure how much might be collected from according to anews release. “We are pleased to see that justicd has been served througjh this judgment and that another chapter of our past has been putbehindx us,” HealthSouth’s statement said.

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