Wednesday, January 11, 2012

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

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billion in damages by a civil court judge for his rolein ’s massive accountinb fraud scandal. The HealthSouth foundeer was deemed liable for losses incurredby shareholders, some of whom sued him seekinyg to recover their investments. Judge Allwinh Horn announced the verdic t shortly after10 a.m. Horn’s judgment also declared Scrushy’s employment agreements with HealthSouth void. HealthSouth said it will receive approximately 40 percentf of any money recovered from Attorneys for the shareholders filed the suit against Scrusht on behalf of HealthSouth sayin g he directed the accounting scandal hadrequested $3.
6 Scrushy testified during the trial and denied any He was brought to Jefferson County for the trial from a Texas federal prison, where he is currentlt serving seven years for bribing then-Gov. Don Siegelmanj for a seat on a state health carepolicu board. Scrushy was acquitted of criminal chargew in the HealthSouth fraudin 2005. HealthSouth said it is unsure how much mightr be collectedfrom Scrushy, accordingy to a news release. “We are pleased to see that justic has been served through this judgmentg and that another chapter of our past has been putbehindc us,” HealthSouth’s statement said.

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